Just a few weeks ago Nokia announced they would lay off 450 employees in North America and Europe in an attempt to reorganize and cut costs. That wave was mostly targeted toward those in the services unit, which is responsible for developing mobile phone apps. They suffered a 90% decrease in first-quarter net profit to €122 million, which was blamed on the stale economy.
Today the cell phone maker said it plans to cut an additional 490 jobs to further decrease spending. This time around, they are expecting to cut up to 170 jobs in logistics, production management and production support. A voluntary resignation package is said to be available for up to 320 employees working at Finland's Salo plant.
In the last series of layoffs, those employed with Nokia in Finland lost up to 100 jobs. The company says overall mobile phone demand is expected to shrink as much as 10% this year, as consumers spend less and handset distributors clear out unsold stock. Nokia has now cut about 4,000 jobs across the organization this year.