LOS ANGELES, CA (Catholic Online) - The reductions are particularly drastic, as it will include the closure of Nokia's sole plant in Finland. Total planned job cuts at the group since Stephen Elop took over as chief executive in 2010 has reached more than 40,000. The company announced that it would book additional restructuring charges of about $1.3 billion by the end of 2013.

Nokia says it plans "to significantly reduce its operating expenses", it will refocus on smart phones and feature phones, expanding location-based services.

Nokia also said that "competitive industry dynamics" in the second quarter would hit its smart phone sector to a "somewhat greater extent than previously expected." No improvement is expected for Nokia in the third quarter.

"Nokia is significantly increasing its cost reduction target for devices and services in support of the streamlined strategy announced today," Timo Ihamuotila, the company's chief financial officer said.

"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."

In response, Nokia stock has toppled more than 70 percent since February of last year after the company announced that it was dropping its own Symbian smart phone operating software and switching to Microsoft's largely untried Windows Phone system.

"These changes underline the seriousness of the challenges Nokia is facing, particularly in light of the eye-watering competition from Apple and Samsung," Ben Wood, head of research at CCS Insight says.

Under the microscope by investors, Nokia also said restructuring-related cash outflows would be about $816 million in the remaining three quarters of 2012 and about $754 million in 2013.

Shares in Nokia fell 9 percent in early trading and were down 6.9 per cent at 0711 GMT.

Nokia also said it would sell luxury phone business Vertu to venture firm EQT.

Nokia has largely been fighting a losing battle with Apple's iPhone and other makers using Google's popular Android software, including Samsung and HTC of Taiwan. Low-end by Asian manufacturers making cheaper phones, such as China's ZTE, have also bedeviled Nokia.

© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.