No more job cuts, says Nokia (but watch this space)

In an effort to steady the market after announcing 1,700 job cuts, Nokia has said that this move does not reflect any further worsening of its outlook and is "the maximum impact that the company can see."

According to Nokia, these latest headcount reductions are part of its previously announced plans to reduce costs and adapt to the market situation. As such, workers within its devices, corporate development and global support functions will be hit, some of which losses will be caused by job positions no longer being necessary following the Symbian acquisition. R&D activities will also be impacted as Nokia concentrates on the greater use of standardised platforms and processes to save cost and time to market.

These actions are part of the company's attempts to reduce its annual expenses by close to €1 billion by the end of next year. Nokia has already frozen hiring, employees' pay and nonessential travel, and offered voluntary redundancy to about 1,000 workers.

But, regardless of these statements and cost-cutting activities, some industry analysts believe that Nokia will need to implement more drastic measures throughout this year and 2010 as the economic slowdown takes its global toll.

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