Nokia cuts 1,000 jobs

June 28, 2001 Posted: 0818 GMT

LONDON (CNN) -- Nokia, the world's biggest wireless phone maker, said on Thursday it will axe up to 1,000 jobs amid slowing global telecom sales.

The job losses will come from Nokia's networks business, which makes communication equipment such as base stations and antennas for mobile phone operators and employs 23,000 people.

The networks business has come under pressure from established telecom equipment makers like Sweden's Ericsson, the world's biggest supplier of network equipment to the wireless market, and Canada's Nortel Networks.

Spending by operators on new high-speed networks is also likely to be below previous estimates after debt-laden European telecom companies were given a green light by regulators in Germany to share networks.

Wireless operators spent more than $100 billion, much of it borrowed, as they acquired the rights to offer third-generation (3G), or faster mobile phone services, such as data, Internet and video over handsets.

Those same companies are expected to spend as much as 8 billion on building their networks, analysts have estimated.

British Telecommunications and Deutsche Telekom were the first to announce plans to share the cost of building networks.

"The target is to align the organisation to the current business environment and to meet the challenges of the future," Nokia said.

The Finnish telecom equipment maker warned earlier this month it would miss second-quarter profit targets and take a restructuring charge of 190 million ($161.5 million), as a U.S. economic slowdown spreads overseas.

It also said it is seeing general economic uncertainty, ongoing technology transition and less aggressive marketing by wireless phone operators.

Nokia said in March it would cut 300 to 400 jobs in the network business, which represented around 25 percent of the company's sales and operating profit in the first quarter.

The company plans to report second-quarter earnings on July 19.

	Want the full story? Search for free company info...
	Enter Company Name:-