Nokia Corp (NOK), the world’s largest mobile phone maker, reported a huge 69% slump in fourth-quarter net profit on Thursday.

The company slashed its dividend for the first time in seven years and predicted a 10 per cent drop in mobile phone sales this year, as consumer demands drops sharply.

In an effort to save costs, Nokia announced that it will slash 1,000 jobs. Job cuts will be seen in sales, marketing, research as well as research amongst other departments.

Nokia is not the first telecom company to make such announcements, with Motorola, Inc. (MOT) announcing last week, a fourth quarter loss and 4,000 job cuts as well as the Swedish company, Ericsson announcing yesterday that it will cut 5,000 jobs as economic downturn takes its toll on sales.

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