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Wednesday, October 03, 2012, 06:39 am PT (09:39 am ET)

Struggling Nokia may sell company headquarters in Finland

In yet another sign of how far it has fallen, Nokia is considering selling its corporate headquarters in Espoo, Finland, to cut costs.

The Finnish handset maker is looking to shed "non-core assets" as part of a corporate restructuring, and among those assets are real estate holdings, including its headquarters, Reuters reported on Wednesday. The Espoo headquarters is said to be valued between 200 million and 300 million euros, or $259 million to $388 million U.S.

Nokia announced in June that it would ax 10,000 jobs by the end of 2013 in an effort to cut costs and turn the company around. That helped prompt all three major credit rating agencies to downgrade Nokia to "junk" status.

In July, Nokia closed its last manufacturing plant in Finland as part of its ongoing efforts to cut overhead at the company. The factory in Salo joined facilities in Burnaby, Canada, and Ulm, Germany, on the chopping block.

Nokia

The "Nokia House" headquarters in Epsoo, Finland, via Wikipedia.


Once a market-leader in smartphone sales, Nokia's share has dwindled as Apple's iOS and Google's Android continue to capture a growing share of the global market. Shipments of handsets running Nokia's defunct Symbian operating system dropped some 60 percent in the first quarter of 2012 and overall sales continue to struggle as the company moves to Microsoft's Windows Phone platform.

Nokia hopes it will be able to fight back later this year with new handsets, including the Lumia 920, based on Microsoft's latest Windows Phone 8 platform. This week, Nokia released a new commercial that criticized a lack of color variety with the iPhone 5, which only comes in black and white.