(RTTNews) - Finnish mobile phone giant Nokia Corp. (NOK: News ) said Tuesday that it would reduce R&D activities in Japan, resulting in elimination of around 220 jobs, representing slightly more than 1% of Nokia's R&D personnel globally. The move aims to align its research and development operations in line with its focused portfolio of future products. A few days back, the company has announced 330 job cuts at R&D sites in Finland and Denmark.

Overall, Nokia has over 17,000 people employed in its R&D activities. However, the Japanese operation of Nokia Siemens Networks, Nokia's network infrastructure business, and Vertu, Nokia's handcrafted mobile phones for the luxury market, would not be affected and would continue uninterrupted.

"Nokia will continue its significant sourcing activities in Japan. Japanese manufacturers are important partners who play a critical role in Nokia's global supply-chain strategy and with whom Nokia continues to develop its world-class logistics operations," noted the company.

Separately, the group also unveiled two new 3G slider phones, the Nokia 6700 slide and Nokia 7230, expected to hit the market in the first quarter of 2010.

Late last month, IDC, a provider of market intelligence and advisory services, said worldwide shipments of mobile phones declined 6% year-over-year in the third quarter of 2009. Nokia witnessed an 8% decline in shipments at 108.5 million units, and market share fell to 37.8% from 38.6% in the third quarter. For its third-quarter 2009, Nokia posted a loss hurt by a hefty impairment charge in Nokia Siemens Networks, declines in segmental sales, mobile device volumes and selling prices.
Among peers, Mobile device maker Sony Ericsson Mobile Communications AB, a joint venture between Sony Corp. (SNE: News ) and Swedish telecom equipment maker LM Ericsson Telephone Co. (ERIC) trimmed its presence in the U.S. by closing about six sites and shifting its headquarters to Atlanta from North Carolina's Research Triangle Park, leading to about 2,000 job cuts, according to media sources.

Earlier in November, Nokia Siemens Networks revealed several plans to improve financial performance and return to growth, through headcount reduction of about 7% to 9%, and realignment of five of its business units into three.

NOK finished Monday's trading at $13.43, on the NYSE.

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by Vincent O'Hara

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