Nokia to close two of its four regional offices in China

Nokia Oyj will close two of its four regional sales offices in China as part of a restructuring plan, the company announced last month, to halt mounting losses from plunging smartphone sales.

Nokia will shut offices in Chengdu and Shanghai and consolidate operations at a northern center in Beijing and a southern hub in Guangzhou, Anna Shipley, a spokeswoman for Nokia’s Beijing office, said in an e-mail interview Friday. The moves will eliminate jobs, she said, without providing further details.

Chief Executive Officer Stephen Elop is reorganizing Nokia after market-share gains by Apple’s iPhone and Samsung Electronics devices led to a slump in sales and four straight quarterly losses. The company said on June 14 it would cut as many as 10,000 jobs globally and close facilities.

“As part of the announcement and planned changes that we made on June 14, we are reviewing some elements of our China business,” Shipley said in the e-mail.

Nokia plans to continue “nationwide” market coverage in the country, she said.

Bloomberg