Nokia confirms layoffs, pulls back sales channels in China

Finnish mobile giant merges existing four sales regions into two larger areas in China.

According to Sina Tech report on Thursday, Nokia confirmed it will shed employees in China but did not elaborate on the details.

The Finnish company in June announced plans to slash 10,000 jobs worldwide by the end of 2013. China, which was one of Nokia's key markets in the world, was not spared this time.

The handset maker will also squeeze the current four big sales regions into two sales areas in China, namely the North and South sales regions, after its sales in the country dipped 18 percent to US$6.7 billion in 2011 compared with a 23 percent rise in 2010.

Sales divisions in Chengdu and Shanghai, which were in charge of mobile phone sales in the western and eastern part of China, will be merged into the northern and southern divisions located in Guangzhou and Beijing, said the company.

Sales chief in the previous west and east regions will be assigned to other appointments.

Earlier reports on Thursday said Nokia China will lay off 300 of 500 employees with a permanent contract, primarily in sales and marketing department. The company, however, said the number was "not accurate".