Business |
Nokia now on Junk Status
Finnish mobil phone giant Nokia is to cut 10'000 jobs, close facilities and restructure the business. Meanwhile; Moody's Investors Service downgraded its credit rating to junk status.
With Moody's cut to Ba1 (from Baa3), all major credit ratings firms (Fitch Ratings and Standard & Poor's reduced Nokia's credit rating in April to BB+), have reduced Nokia to junk status. Sales volume for its mobile phones fell 16% in 1Q/2012 YoY, resulting in a 35% drop in revenue.
Furthermore, Nokia announced plans to cut a further 10'000 jobs worldwide by the end of next year (additional to the 14'000 layoffs announced last year). It also plans to shut down several research and manufacturing facilities and restructure the business.
