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Nokia: we are sacking 10,000 people, off-loading Vertu & buying Scalado assets

Life in Nokia-land hasn't exactly been a cake walk recently, with the company's latest press release making for further grim reading.

The document, issued today, announces a raft of plant closures and large-scale job lay-offs, including the departure of several senior management figures, as well as offering an updated financial outlook for the company.

Factories and research facilities in Finland, Germany, and Canada will be shut down with Nokia aiming to "reduce up to 10,000 positions globally" as part of a cost-cutting and strategy "sharpening" drive.

According to the release, the main departures include Jerri DeVard stepping down as chief marketing officer; Mary McDowell leaving her post as executive VP of Mobile Phones; and Niklas Savander leaving his position as executive VP of Markets.

Nokia also plans to offload Hampshire-based subsidiary Vertu on to private equity firm EQT VI for around £160 million, maintaining only a 10 per cent minority stake in the manufacturer. The luxury handset unit makes jewel-encrusted mobiles that typically retail for around £200,000.

Positive news was sparse in the release, but optimists can seize on the announcement that Nokia is buying up assets from Scalado soon to help it improve its smartphone cameras - developers, intellectual property, and technologies will be acquired from the digital imaging company in Q3.

The release concluded that competitive market dynamics would continue to affect the company's performance and to a greater degree than initially predicted, with no improvement expected in the near future.

"Nokia expects competitive industry dynamics to continue to negatively impact Devices & Services in the third quarter 2012. Nokia now expects its non-IFRS Devices & Services operation margin in the second quarter 2012 to be below the first quarter 2012 level of negative 3.0%," the statement reads.

The announcements by Nokia recall the global restructuring moves being made by fellow beleagured phone manufacturer RIM - both companies are widely regarded as struggling to keep up with Apple, HTC, and Samsung in the smartphone market.