Nokia Stock plummets with announced layoff and restructing
Nokia (NOK) stock is flat-lining this morning after the phone maker said it will cut 10,000 jobs — 19% of its work force – by the end of 2013.
Nokia 5800 XpressMusic Camera 2009 Photo/Paula Ordoveza via wikimedia commons
Yahoo reports that by 10:30 am EST on Thursday, the Nokia stock had already fallen 15%, sending the share price to a new 52-week low of $2.37.
The tech stock is now down 52% for the year and appears to be still falling.
Nokia on Thursday announced a number of moves as it cut second-quarter guidance and upped its bet on Windows Phone, which has yet to help slow a slide that saw the struggling vendor lose nearly $3 billion over the past two reported quarters. Nokia lost $1.2 billion in the fourth quarter last year and another $1.7 billion in the first quarter as the company attempted to regain its footing in an industry that passed it by several years ago.
The vendor has shed thousands of jobs recently, and the announced lay off 10,000 more is coupled with the company reshuffling a number of executives.
Nokia said it expects these new restructuring efforts to cost 1 billion Euros on top of the 900 million Euros tied to its previous restructuring plans.
At the same time, Nokia announced it sold its luxury Vertu line to private equity firm EQT, though it will keep a 10% stake, and it has acquired Swedish software firm Scalado AB in an attempt to strengthen its Windows Phone service portfolio.
