Nokia Networks to cut 1,000 jobs this year

Nokia Corp.'s infrastructure division, Nokia Networks, will shed between 900 and 1,000 jobs globally by the end of this year, the Finnish telecommunication company said in a statement Thursday. The gradual cuts, which represent about 4 percent of Nokia Networks' 23,000 employees, will "align the organization to the current business environment", Nokia said.

Nokia did not say in which countries the cuts would be made.

Nokia Networks develops and produces base station, switching, transmission, network management and intelligent network products for wireless and fixed-line telecommunication environments, the company said.

3G (third-generation) networks represent a major revenue opportunity for providers of networks. Nokia has won several contracts from future 3G operators to build their infrastructures over the next few years. Recent deals include a US$435 million order from Australia's Cable & Wireless Optus Ltd. (CWO) for a nationwide network, and a major share in a 3.5 billion euros (US$3.1 billion contract awarded by Orange SA for 3G networks in the U.K., France and Germany.

However, several potential 3G operators worldwide are suffering under the combined weight of high spectrum license prices, poor economic conditions and uncertainty about how 3G services are going to generate revenue.

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