Nokia To Ax 550 In Network OperationsNokia To Ax 550 In Network Operations

HELSINKI, Finland (AP) -- Nokia, the world's biggest cell phone maker, said Wednesday it will cut 550 jobs in its networks operations in the United States, Britain, Sweden, and Finland.

The cuts represent 3% of its networks business workforce and are part of the company's plans to reduce its research and development as it tries to cut costs and improve efficiency.

Some of the employees will be relocated within the company, Nokia said, but did not elaborate.

Nokia said it will transfer some operations from its site in Santa Rosa, Calif., to Espoo, its Finnish headquarters near Helsinki, but will eventually close the California location.

Also, it will close a small plant in Kista, Sweden, and reduce some personnel in Britain.

Nokia Networks employs some 18,500 people globally. The unit has been hit by a continuing worldwide slump in demand for wireless network equipment.

In August, it announced it would cut around 900 jobs, mainly within network delivery and maintenance services.

Nokia has sales in 130 countries with 53,000 employees. It had a net profit last year of 3.4 billion euros ($3.6 billion) on sales of 30 billion euros ($32.2 billion).