Nokia to Axe 10,000 Jobs by 2013, Warns of Q2 Losses

Nokia, the Finland-based cell phone maker, plans to cut another 10,000 jobs globally by 2013 as it struggles to reduce mounting losses and regain dipping smartphone sales.

The company also plans to close down its facilities in Finland, Germany and Canada as part of the reorganisation, the Espoo-based company said in a statement on Wednesday.

"We must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions," said Stephen Elop, CEO of Nokia in a statement.

With its latest announcement, the total job cut in the loss-making company has reached over 40,000 since Elop took over the control of the handset maker.

"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," Elop added.

The company also warned that its second quarter losses from its mobile phone business would be larger than expected. It will also book additional restructuring charges of about one billion euros ($1.3bn, £811m) by the end of 2013.

The company's handset market share dropped considerably since the entry of the Apple iPhone in 2007 and Samsung's smartphones. Nokia's handset shipments dropped 24 percent in the first quarter.

Nokia stocks dropped over 70 percent of its gains since the announcement of its migration to the Microsoft's Windows Phone system from its own Symbian smartphone operating software in February 2011.

On Tuesday, Nokia shares declined 1.8 percent to 2.22 euros in Helsinki, registering a 49 percent loss for the past one year.