SALO, FINLAND — Nokia plans to close operations in three countries and lay off nearly 19% of its workers by the end of next year as it tries to reduce its enormous red ink.
Nokia is getting crushed in the fast-growing smartphone market, where its first-quarter share came in well behind leaders Samsung and Apple.
The cellphone maker plans to close its research centers in Ulm, Germany; Burnaby, Canada; and a handset manufacturing facility in Salo, Finland. The cuts will include nearly 10,000 workers around the world.
Nokia is coming off $1.2 billion in losses in its first quarter on a 29% drop in sales.
“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, Nokia's chief executive, in a statement. “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.”