"We therefore see continued potential downside to the recent stock price and maintain our underperform rating," Ferragu said. “They can’t continue like this.” 
 
 Nokia said the second-quarter adjusted operating margin at the devices unit will be worse than a loss equivalent to 3 percent of revenue in the first quarter. Nokia had projected margins to be “similar to or below” the first-quarter level. Over the past five quarters, the onetime darling of mobile telcoms has eroded its cash pile by 2.1 billion euros - a rate that would wipe out its entire 4.9 billion reserves in a couple of years. The 10,000 job cuts, which include the closure of Nokia's only plant in its homeland Finland, bring total planned cuts at the group since Elop took over as chief executive in 2010 to more than 40,000 staff, or every third worker. Nokia's five-year credit default swaps (CDS) were at a new all-time high of 933 basis points on Thursday according to Markit. Nokia, whose cash position is increasingly scrutinized by investors, also said restructuring-related cash outflows would be around 650 million euros in the remaining three quarters of 2012 and around 600 million in 2013. Of the latest job cuts, 3,700 will take place in Finland, where the firm will also close its plant in Salo - the last major cellphone manufacturing site in western Europe, the cradle of the global industry. The cuts and closures will result in expenses of about 1 billion euros, Nokia said. The company also agreed to sell its Vertu luxury-phone unit to Swedish private-equity firm EQT Partners AB, without disclosing terms.
– Even rose-colored glasses can't make Nokia's situation look any brighter. The company today announced that it would cut another 10,000 jobs, which Reuters points out is one out of every five slots at its once-formidable global cellphone business. The news was accompanied by the warning that its main mobile devices unit would post an even bigger operating loss than expected, as Nokia faces competition from Apple and Google that it admits affected it "to a somewhat greater extent than previously expected," reports the Wall Street Journal. The cuts will be made by the end of 2013, and will add up to $2 billion in cost reductions by the end of that year. The overhaul, CEO Stephen Elop's biggest to date, extends to the top, with the company's CMO and heads of markets and mobile phones to step down by month-end. Bloomberg reports that sites in Finland, Germany, and Canada will also be shuttered, and notes that the stock has hit its lowest price since 1996. Since Elop took over in the fall of 2010, nearly 40,000 jobs have been eliminated; Nokia currently employs 122,000, some 53,000 of which work in its mobile devices unit.