Nokia (NYSE: NOK) stock is flat-lining this morning after the Finnish phone maker said it will cut 10,000 jobs – 19% of its work force – by the end of 2013.
As of 10:30 a.m. eastern time, Nokia stock had already fallen 15%, sending the share price to a new 52-week low of $2.37. The beaten-down tech stock is now down 52% for the year – and still falling.
It may take a while for the stock to recover from today’s news. The company is shuttering research and development sites in Germany and Canada, plus its largest manufacturing plant in Finland. In addition, Nokia is also replacing its heads of mobile phones and sales – effective next month.
Lastly, the company warned that its second-quarter losses would be higher than previously expected.
It all adds up to a plummeting stock – and one that may not recover anytime soon. As a business, Nokia has struggled mightily with the rise of Apple’s (Nasdaq: AAPL) iPhone and Google’s (Nasdaq: GOOG) Android software. In essence, Nokia’s phones – even after a February 2011 smartphone deal with Microsoft (Nasdaq: MSFT) – have gotten lost in the shuffle.
Now Nokia is cutting its losses. The company estimates that the job cuts will reduce costs by $2 billion. The 10,000 job cuts come on top of the 14,000 cuts the down-on-its-luck company made last year.