Nokia, the world's largest mobile phone maker, said it plans to cut 450 jobs in an attempt to cut costs with labor force in order to cope with the falling demand for mobile phones. The company also said it wants to invest in creating new services.

 

Nokia recorded its first ever quarterly pretax loss in January-March. Now, the mobile phone giant decided to cut annual costs at its key handset unit alone by about $911 millions as a measure to counter the economic crisis. 

 

The company is not focused only on cutting costs, but also has investment plans. Nokia said it will work on developing new mobile Internet services such as games or maps. These plans were made last year, but the economic recession that hit the whole planet made Nokia scale back its plans a bit.

 

The company said it will "focus investments on fewer initiatives and increase the use of common enablers across certain services." the company's head of entertainment and communities operation at Nokia told Reuters that the they are planning to move int Ovi platform strategy. 

 

The mobile phone market is in free fall. Analysts expect it to shrink about 10%  in 2009 as consumer demand is slowing at a fast rate. Nokia has so far cut 3,000 jobs in all it units around the world.