Mobile phone major Nokia is planning to reduce up to 10,000 jobs globally by the end of 2013.


Nokia will reduce its Devices & Services non-IFRS operating expenses to an annualized run rate of approximately EUR 3.0 billion by the end of 2013. This is an update to Nokia's target to reduce Devices & Services non-IFRS operating expenses by more than EUR 1.0 billion for the full year 2013, compared to the full year 2010 Devices & Services non-IFRS operating expenses of EUR 5.35 billion. 


In addition to the already achieved annualized run rate saving of approximately EUR 700 million at the end of first quarter 2012, the company targets to implement approximately EUR 1.6 billion of additional cost reductions by the end of 2013.


The cut job cut is part of sharpening its strategy, improving its operating model and returning the company to profitable growth. 



"We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia," said Stephen Elop, Nokia president and CEO. 


"We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services. However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions," Elop added.


As part of the restructuring, Nokia will shut down its facilities in Ulm, Germany and Burnaby, Canada.


It will close manufacturing facility in Salo, Finland. However, research and development efforts in Salo will continue.