Mumbai, June 14: Mobile handset maker Nokia today announced plans to slash 10,000 jobs worldwide by the end of 2013, overhauled its management team, sold off its luxury mobile phone business Vertu and shut down some of its facilities in a desperate attempt to revive its fortunes.

Finland-based Nokia said it would be starting the process of engaging with employee representatives in accordance with country-specific legal requirements.

There was no word about how many jobs would be axed in India. The handset maker has a manufacturing plant in Chennai.

As on March 31, Nokia employed 1,22,148 people. Of these, 68,595 were employed by Nokia Siemens Networks. Reports said 3,700 jobs would be slashed in Finland alone.

“These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia’s long-term competitive strength,” said Nokia president and CEO Stephen Elop.

The Finnish giant announced a number of changes in its senior leadership.

Juha Putkiranta has been named the new executive vice-president of operations. Timo Toikkanen will be the new executive vice-president of mobile phones.

Chris Weber, who introduced the Lumia line in North America as the head of US operations, will become executive vice-president of sales and marketing, while Tuula Rytila will be the senior vice-president of marketing and chief marketing officer. Putkiranta, Toikkanen and Weber will join the Nokia leadership team effective July 1, 2012.

The company also announced that it was divesting its luxury mobile phone business, Vertu, to European private equity firm EQT VI.

Nokia would retain a minority shareholding of 10 per cent in Vertu, leaving EQT’s VI fund with a 90 per cent ownership. Terms of the deal weren’t disclosed.

Vertu is the biggest player in the luxury handset market. Its devices, which retail for up to $300,000, are finished with fine calf leather, alligator skin or diamonds and are sought-after status symbols.

On the expenses front, Nokia said it planned reductions in certain research and development (R&D) projects, resulting in the planned closure of its facilities at Ulm, Germany, and Burnaby, Canada. It will also consolidate its manufacturing operations, resulting in the closure of its manufacturing facility at Salo, Finland. R&D in Salo will, however, continue.