Finnish phone maker Nokia has decided to hang up on a large portion of its workforce and manufacturing infrastructure.
The company has announced it will cut 10,000 jobs, close factories and research facilities, and replace some of its top executives. Bigger-than-expected losses during the second quarter would also be announced, said company heads.
An early mobile phone powerhouse, Nokia has in recent years struggled to compete with Apple’s iPhone and Google’s Android phones in an increasingly crowded marketplace.
Like Canada’s Research In Motion, the company has been considered one of its home country’s corporate crown jewels, at least in the world of modern technology, but has stumbled on critical phone software and hardware updates.
“We have very challenging business conditions and it is very important that we move forward aggressively and urgently,” said Chief Executive Stephen Elop, according to the Wall Street Journal. “We need to ensure that we have the capital requirements in place to help us through our transition.”