Nokia Reports 27 Per Cent Drop in Sales and Plans to Slash up to 440 Jobs

Nokia has reported a 27 per cent year-on-year drop in mobile phone sales in the second quarter, selling 61.1m phones in total, and is to undertake a restructure which could impact up to 440 jobs as it looks to become more fleet of foot.

The Finnish mobile phone group today (Thursday) reported its second quarter results, with operating profits rising to €303m (£261m) from €181m in the previous quarter. Net sales were down 24 per cent on the year, from €7.55bn to €5.70bn.

Sales of Nokia Lumia and its other smartphones jumped to 7.4m from 6.1m in the first quarter. Nokia’s smartphone business has been dented by the popularity of Apple’s iPhone and Samsung and other Android-based phones. 

Stephen Elop, chief executive of Nokia, said that the performance of Lumia indicated “increasing momentum for the ecosystem”. He added: “During the third quarter, we expect that our new Lumia products will drive a significant part of our Smart Devices revenues.”

Nokia said that sales of its cheaper low-end phones fell to 53.7m in the second quarter from 55.8m in the first quarter.

Nokia also disclosed that up to 440 jobs were under threat from a restructure at its ‘devices and services’ unit, which employs over 30,000 people. It is unclear if the planned job cuts will impact the UK.