The phone maker announced it would cut 10,000 jobs as sales fell amid "competitive industry dynamics".
Nokia has faced tough competition from Apple and phones using Google's android system, and has warned that second quarter losses will be larger than expected.
The company has now cut 40,000 jobs since September 2010, and its shares have fallen more than 70 per cent since February 2011.
"These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," Nokia CEO Stephen Elop said in a statement.
Nokia plans to close its remaining Finnish plant, and close down further development sites in Germany and Canada in an attempt to save on operating costs. It will also sell its luxury handset maker, Vertu, which makes phones encrusted with diamonds and saphires.