Nokia has announced plans for restructuring its mobile phone business and R&D strategy in a move which is expected to save costs and result in job cuts affecting over 500 staff.

A reorganisation of its sales and marketing activities will affect approximately 450 employees, maximum 100 in Finland, said Nokia.

It is also changing the focus of its central research activities which means it will address fewer research areas. The planned reorganisation is estimated to have an impact on approximately 130 research staff globally, of which a maximum of 100 are in Finland.

Nokia also plans to close its Turku site in Finland and relocate those activities predominantly to Salo (Finland).

"Our aim is to find alternative work within Nokia for as many employees as possible," said Juha Äkräs, Senior Vice President, Human Resources, Nokia.

Nokia has today started local employee consultations where required to discuss these plans.

According to the plans, the changes in the Markets unit, Nokia Research Center and in other Nokia functions will come into effect on January 1, 2009.

The closing of the Turku site is estimated to be completed by the end of January, 2009.