“The cuts are part of our efforts to adjust to the market situation,” Huovinen said. “The announced cuts are the maximum impact that we see.”

Nokia said January 22 that it aims to reduce annual costs at devices and services by more than €700 million (US$909 million) by the end of 2010 after slashing its dividend for the first time in seven years. Nokia forecasts a 10 percent slide this year in industry sales as the global crisis saps demand.

Nokia sold 15 percent fewer phones in the fourth quarter than a year earlier and cut its industry sales forecast in January for a third time since November. The economic slump has led competitors Motorola Inc. and Sony Ericsson Mobile Communications Ltd. to post losses.

Chief Financial Officer Rick Simonson said in January Nokia cut its dividend and put share buybacks on hold to reflect lower earnings and preserve cash. Nokia sold €1.75 billion in bonds earlier this year to raise additional funds.

“Nokia continues to seek savings in operational expenses, looking at all areas and activities across the company,” Nokia said in Tuesday’s release.

Source: Bloomberg