Nokia to cut further 490 jobs

HELSINKI, FINLAND: The world's top cellphone maker Nokia Oyj said on Tuesday it plans to cut a further 490 jobs as part of its global cost cutting program.

The Finnish firm said it would cut 170 jobs in logistics, production management and production support and would offer a voluntary resignation package for up to 320 employees working at its Salo plant in Finland.

Nokia, which made its first ever quarterly pretax loss in January-March, is cutting annual costs at its key handset unit alone by more than 700 million euros ($948.7 million) to counter plunging demand.

The overall mobile phone market is expected to shrink 10 percent this year, as consumers rein in spending and handset sellers try to clear out unsold phones.

Including the job cuts announced on Tuesday Nokia has slashed some 4,000 jobs across the organization this year.