Nokia announces major restructuring; 10,000 jobs could be lost by 2013

To keep the electricity on and the plants humming while going through this transition, Nokia says it needs to cut expenses and it will do so by cutting head count and closing factories. The company says it will post an operating profit in its Devices and Services group ASAP. To achieve this, Nokia has a plan. The company wants to broaden the price range of Nokia Lumia devices it offers and use Windows Phone as a way to differentiate itself from the competition. In a related development, as we have told you, Nokia improved its imaging assets by acquiring part of Sweden-based Scalado. The latter has imaging technology on more than one billion devices.
"Nokia is significantly increasing its cost reduction target for devices and services in support of the streamlined strategy announced today. With these planned actions, we believe our devices (and) services business has a clear path to profitability. Nokia intends to maintain its strong financial position while proceeding aggressively with actions aimed at creating shareholder value."-CFO Timo Ihamuotila
In an announcement that might get market analysts working on some new calculations, Nokia said that it will have lower operating margins in Q2 of 2012 than the -3% of Q1. In a language that only Wall Street understands, that is considered a major negative bit of news considering that the company had previously made a statement saying that operating margins for the second quarter would be similar to or lower than the -3% recorded in the first quarter. Leaving out the phrase "similar to" indicates that there is no hope that operating margins in the three months ending this month will be close to the first quarter figure.
Nokia's stock, which has dropped 40% in the last three months, bounced a bit last week on rumors of a bid for the company from Samsung. But Samsung denied that it was interested and Microsoft added that while it had taken a look at buying Nokia, it really wasn't interested at this time.
source: Nokia