Embattled mobile phone maker Nokia Corporation ( NOK ) on Thursday announced massive layoffs and plant closings in an emergency effort to cut costs.
The once-mighty Finnish company has struggled in recent years amid higher smartphone competition from rivals like Apple ( AAPL ) and Samsung. This past April, it posted a massive $1.2 billion quarterly loss.
Nokia said it would eliminate 10,000 jobs globally by the end of 2013. Its cost reduction plans also include the closure of manufacturing plants, and the shutting of multiple research and development projects.
CEO Stephen Elop commented, "These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength. 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."
Nokia shares fell 25 cents, or -9%, in premarket trading Thursday.
The Bottom Line
We can assure investors the current 9.32% dividend yield is likely on shaky ground. We would continue to avoid the stock here.
Nokia Corporation ( NOK ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.3 out of 5 stars.
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