Nokia, the world's largest cellphone vendor by volume, said on Thursday it would close its plant in Cluj, Romania and cut 1,300 jobs in its location and commerce business unit whose products include maps for mobile phones.
The planned closure of the Cluj factory combined with adjustments to supply chain operations is estimated to impact approximately 2,200 employees, Nokia said.
Nokia has struggled this year with falling sales and profits after the firm in February said it would switch to use Microsoft's software for its smartphones, but the first of these will reach the market only later this year.
Nokia's share price has halved since February, when it unveiled the shift to Microsoft, on worries the company will lose so much market share before the new phones come out that it might never make up lost ground.
In April Nokia unveiled a 1 billion euro cost cut plan, which included laying off 4,000 staff.
Separately on Thursday, Nokia supplier Digia said it had agreed to cut 170 jobs in its Finnish operations, and could cut up to 80 more as it revamped its business.
Most of the job cuts would come from its mobile business unit, Digia said.
(Reporting By Tarmo Virki; Editing by Helen Massy-Beresford)