The Finnish Telecom Manufacturers three senior executives will also be departing from the company. The closing facilities include a research center, a factory in Germany, Canada and in its home land Finland.
The company had issued a warning to investors that its loss was likely to be greater in the second quarter of this year. It had posted a loss of $1.2 billion in the first quarter of 2012. Nokia also said the negative effects of its transition to a Windows-based Smartphone business would continue into the third quarter.
Once an undisputed leader in the mobile phone market, Nokia lose its charm over the years to Apple, Samsung and other handset makers based on Android.
The company, which announced its partnership with Microsoft in 2011 for making a range of Windows based Smartphones has since then saw a steep decline of sales and profit loss, mainly due to people and operators avoiding Nokia’s own Symbian based devices.
Nokia also announced the sale of its luxury handset business, Vertu to a European firm. With its streamlining efforts, the company is planning to save €1.6 billion by the end of 2013.
“These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,” said Stephen Elop, the Nokia chief executive and a former Microsoft executive. “We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities.”
Last week, rumors about a Microsoft takeover had made Nokia’s sinking shares rose six percent.
“The cost savings and job cuts were intended to return Nokia to profitability “as soon as possible,” Elop said.
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