Pressure to reduce costs and return to profitability during the current economic downturn has forced Nokia to slash 1800 jobs in its network infrastructure division.
The division, which manufactures mobile phone infrastructure equipment such as base stations and mobile switching centres, posted a substantial first-quarter loss this year, Nokia said in a statement.
Many of Nokia's mobile operator customers have cut their investments in new equipment in a move to reduce their heavy debt loads, after sinking billions of euros in pricey 3G (third-generation) licences.
Of the 1800 planned job cuts, around 1100 will be in Finland, according to the statement. That's a blow to a company that has created thousands of new jobs in the country's high-tech sector.
Additionally, Nokia will review the costs, scope and number of programs in its research and development activities in the network division, with the aim of reducing the number of product lines to adjust to the current market situation, the company said.