Nokia's stellar quarter not enough to stave off job cuts

Finnish mobile handset maker Nokia reported earnings much higher than expected, a month after current CEO Stephen Elop took the reins from longtime chief Olli-Pekka Kallasvuo in September. The company reported a profit of 322 million euros, much higher than the 182.5 million euros expected by analysts.

Regardless, this was not enough to save the jobs of about 1,800 employees, whose jobs were eliminated in an effort to streamline the company's operations. In a statement, Elop hinted that these cuts may be only the beginning as the industry as a whole is going through "a remarkably disruptive time."

The cuts seem targeted to the development and web services divisions. Such moves may not be all that surprising: Nokia's Symbian OS has seemingly fallen behind as its rivals have become more innovative, and web services like Ovi are generally considered a failure by industry analysts.

Nokia seems serious about keeping its spot atop the smartphone heap: despite the successes of both Android and the iPhone, its Symbian-powered phones still remain on top. So far, the company still seems to be on track -- sales of its phones are up 16 percent year over year.

"We will make both the strategic and operational improvements necessary to ensure that we continue to delight our customers and deliver superior financial results to our shareholders," Elop said.