All the profits for us and none for you
Nokia will lay off 10,000 jobs globally and close plants by the end of 2013 in a further drive to cut costs, the company said on Thursday.

The cuts mean that it will close some research and development projects, including in Ulm in Germany and Burnaby in Canada.

The Finnish phone-maker said it would also close the manufacturing plant in Salo, but would keep its research and development operations there.

The company also confirmed the sale of its luxury phone business, Vertu, to the private equity firm EQT.

Nokia, which will retain a 10% minority shareholding in Vertu, said the sale was the best option for the business.

It said the new owners would develop Vertu as a standalone company, driving the development of the luxury mobile phone category through significant investments in retail expansion, marketing and product development.

Nokia is fighting fierce competition from Apple's iPhone and other makers using Google's popular Android software, including Samsung and HTC.

It is also being squeezed in the low-end by Asian manufacturers making cheaper phones, such as China's ZTE.

Although it plans to significantly reduce its operating expenses, Nokia says it will focus on smartphones and feature phones and intends to expand location-based services.

Nokia also said that competitive industry dynamics in the second quarter would hit its smartphone sector to a greater extent than previously expected and that no improvement was expected in the third quarter.

"Nokia is significantly increasing its cost-reduction target for devices and services in support of the streamlined strategy announced today," said chief financial officer Timo Ihamuotila.

"With these planned actions, we believe our devices [and] services business has a clear path to profitability. Nokia intends to maintain its strong financial position while proceeding aggressively with actions aimed at creating shareholder value."

Last year, Nokia announced more than 10,000 layoffs, aimed at cutting operating expenses by €1bn (£800m) by 2013.