Nokia's headquarters in Espoo, Finland.
(Credit:
Nokia)
Struggling phone maker Nokia said this morning it will sell its head office in Espoo, Finland to software consultancy firm Exilion for 170 million euros ($222m).
The phone making giant said in a statement that it will lease back the head office at a lower price, but Nokia did not disclose any additional figures.
The move comes as the phone maker, which has suffered over the past year with poor quarterly financial results, continues to struggle in the face of rivals and competing phone makers, such as Apple and Samsung.
Nokia chief financial officer Timo Ihamuotila said the deal is in line with the firm's aims to cut back on spending and shed non-core activities, but noted that Nokia has no plans to move away from its Espoo headquarters any time soon. The company will remain in the Finnish city "on a long-term basis," he added.
"Owning real estate is not part of Nokia's core business and when good opportunities arise we are willing to exit these types of non-core assets," Ihamuotila said.
The firm said it expects to complete the sale by the end of 2012, less than four weeks away.
Nokia has announced 10,000 job cuts this year alone, along with plans to streamline the company's operations in a bid to save 1.6 billion euros ($2.09bn) by the end of 2013.
Nokia's third quarter results showed a loss of 576 million euros ($754m) and a decline on net sales down by 19 percent on the previous quarter, hitting the firm's smartphone sales significantly by more than one-third year-on-year. Nokia also burned through about $450 million in cash between the second and third quarter, leaving the firm's cash reserves at 3.6 billion euros ($4.72m).
Nokia sells Finnish headquarters amid financial troubles
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Nokia sells Finnish headquarters amid financial troubles
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Nokia sells Finnish headquarters amid financial troubles
