Nokia announced Thursday that it would be slashing 10,000 jobs by the end of 2012, the latest worrisome move by the beleaguered cell-phone company to recover its place in the cellphone market, Reuters reported.
Nokia, which is based in Espoo, Finland, posted losses of $1.2 billion in the first quarter amidst a 29 percent decrease in sales, the New York Times reported. A former leader in the global mobile phone industry, Nokia has been outpaced by Apple, Samsung and Google, who all have had far greater success with their smart phones.
CEO Stephen Elop said the job cuts, which will affect 19 percent of Nokia's workforce, are "a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," according to the Associated Press. "We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia," Elop added.
More from GlobalPost: Plunging smartphone sales lose Nokia $1.6 billion
“We do not make plans that may impact our employees lightly, and as a company we will work tirelessly to ensure that those at risk are offered the support, options and advice necessary to find new opportunities," Elop said, the Times reported.
"The job cuts and profit warning 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, told Reuters.
The company's stock has fallen 18 percent this quarter, reaching its lowest level since 1996, Bloomberg Businessweek reported. Nokia’s market value is currently below $10 billion, and the company warned investors that it was expecting even greater losses in the second quarter and into the third, largely due to its transition to a Windows-based smartphone business, the New York Times reported.
Nokia and Microsoft announced a partnership in February 2011 to manufacture a line of smartphones called Lumia that would run on the Windows operating system, the Times reported. However, though the Lumia devices have been praised by critics, their sales have not been strong enough to make up for the company's decline, according to the Times.
Nokia will also be shuttering its research centers in Germany, Canada, and Finland, according to the Times, and will see three of its senior executives leave the company.
More from GlobalPost: Nokia: On the verge of bankruptcy?