Espoo, Finland - Nokia announced its third-quarter financial results, and with it a restructuring plan that will result in the cutting of 1,800 employees.
According to Nokia, the company has plans to "accelerate its transformation and increase effectiveness. The plans include simplifying operations in product creation in Nokia's Symbian smartphones organization, as well as Nokia's services organization and certain corporate functions."
This will result in the loss of 1,800 employees globally. Nokia said it will "renew product creation to increase responsiveness to consumer demands and reduce time to market, [including] expanding the use of common tools for application development, streamlining software development, simplifying and consolidating operations, and placing greater focus on adding value to consumers.
The firm said it aims to bring "an integrated Ovi experience" across all of its devices instead of the distinct end-to-end service lines it has now.
"In line with these changes, Nokia is also streamlining certain corporate functions and corporate research activities," it added.
Regarding its financial results, net sales for its third quarter reached 10.3 billion euros ($14.4 billion), up 5 percent year on year and 3 percent from the previous quarter.
In devices and services, net sales were 7.2 billion euros ($10.1 billion), up 4 percent year on year, while gross margin was 29 percent, down from 30.9 percent in Q3 2009 and 30.2 percent in Q2 2010.
Net sales in the services division were 159 euros ($222.9 million), up 7 percent.
Total mobile device volume hit 110.4 million units, up 2 percent year on year and down 1 percent from the previous quarter.
For converged mobile devices, which includes smartphones and mobile computers, volumes reached 26.5 million units, up 61 percent year on year and 10 percent from the prior quarter.
Its Navteq segment showed non-IFRS net sales of 252 million euros ($353.3 million), up 52 percent year on year and flat from the previous quarter.
Stephen Elop, CEO,
, said, "Some of our most recent product launches illustrate that we have the talent, the capacity to innovate, and the resources necessary to lead through this period of disruption. We will make both the strategic and operational improvements necessary to ensure that we continue to delight our customers and deliver superior financial results to our shareholders."