In a sign that investor fears are growing over the future of Nokia shares in the Finnish mobile phone maker have fallen below €1.50 for the first time since 1996.
Shares were trading at £1.18 (€1.49) on the London Stock Exchange this morning, down more than 3 per cent from Friday and 66 per cent year on year.
Nokia reported a loss of €929m (£754m) in April, compared with a profit of €344m twelve months previously.
The company now plans to cut operating costs by an additional €1.6bn per year, on top of the already achieved annualised run rate saving of approximately €700m at the end of Q1 2012.
Included in this will be the reduction of certain R&D projects and consolidate its manufacturing operations, resulting in the closure of several facilities.
It will also lay off 10,000 workers by the end of 2013 and sell its luxury phone maker Vertu.
“We are obviously a company in transition and our recent financial results have reflected that,” said Nokia spokesperson James Etheridge in an email to Techworld.
“There is a lot of hard work going on here that is not yet visible in our results, particularly around the speed of product development, which has picked up substantially, and the quality of the final products themselves."
The company will increase investments in feature phones and smartphones based on the Windows Phone operating system.
Nokia plans to differentiate its Lumia smartphones with services by focusing on location based platforms such as navigation and visual search applications like the recently announced Nokia City Lens.
“At the most simple level, our success will depend on delivering great products which consumers love so that is where our focus is. We’re continuing to work flat out in that respect," said Etheridge.