Nokia plans to cut hundreds of jobs in Finland and abroad as part of its plan to reduce research spending.
Nokia said it would cut up to 250 staff in Finland and "a few hundred" more in Germany and elsewhere, as it follows through on plans to curtail research and development spending to 9-10 per cent of sales by the end of 2006 from 13 per cent in 2003.
Earnings will be affected in the first quarter as a result.
Nokia said the cuts would take place gradually during 2005. It had 19,849 staff at its R&D facilities by the end of 2003.
Nokia first announced plans to lower R&D spending in November, part of the firm's overall drive to keep costs in check as it tries to win back global market share lost in 2004 due to an uncompetitive handset portfolio.
Nokia shares initially dipped on the news, then steadied and were down 1.2 per cent at €11.77 on a softer Dow Jones Stoxx technology index.