According to several media reports, Nokia (NOK) says it will cut several hundred employees and temporarily lay off 2,500.
Nokia blames the move on the declining market for handsets around the world.
Nokia is the world largest handset company, with about 40% of the market. No other company in the industry has even half that market share. That makes Nokia a relatively good indicator of how cellphone sales will go this year.? RIM (RIMM) and Apple (AAPL) may dodge some of the troubled because they make high-end handsets, but even the people who can afford those are cutting back.
The Nokia news is particularly bad for Motorola (MOT) which is in a battle to keep its handset operation open.
Making handsets was one of the best businesses in the world for a decade. That is over now.
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