Finnish mobile phone company Nokia has announced that 1,000 people are to lose their jobs following a drop in net income of 69 per cent to €576m for the quarter ending December 31st – the firm’s worst Q4 results since 2001.

Revenue fell 20 per cent to €12.7bn, whilst sales fell 19.5 per cent compared to Q3 and were down 15 per cent on same period last year. Nokia’s market share dropped by three per cent, settling at 37 per cent. It also forecast a further dip of ten per cent in consumer demand over the next 12 months.

Nokia has stated that it aims to cut costs at its devices and services units by over €700m by the end of 2010.

“In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry", CEO Olli-Pekka Kallasvuo stated. “We are taking action to reduce overall costs and to preserve our strong capital structure.”