Nokia cuts logistics, support jobs

The phone giant continues to come to grips with lower phone sales

Nokia plans to cut approximately 170 employees working in logistics, production management and support, it said on Tuesday.

Also, Nokia announced a targeted Voluntary Resignation Package for up to 320 employees at its mobile device manufacturing facility in Salo, Finland.

The plant makes devices such as the company's Nseries multimedia phones and Eseries business phones.

The cuts are part of its ongoing goal to save EUR700 million (US$950 million) by 2010, as it continues to struggle with a drop in phone sales.

Nokia's first quarter report showed the company had sold 93.2 million phones, a steep drop from the 113.1 million it sold during the fourth quarter of 2008.

This is the second time the manufacturing facility in Salo has been targeted for savings.

Previously announced measures called for 20 percent to 30 percent of the 2,500 employees there to be laid off on a rotational basis, for periods of up to 90 days.

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Mikael Ricknäs

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