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HELSINKI (AFP) – Nokia, the world's largest ambulatory sound maker, said Friday it was slashing jobs and connexion forces with US colossus Microsoft in a major strategy shake-up that left investors disappointed.

In an try to radically change instruction and fisticuffs soured intrusive rivalry from RIM, Apple and Google, honcho chief author Elop said Windows Phone would now help as Nokia's direct smartphone platform.

Canadian Elop -- a former Microsoft chief who in September became the prototypal non-Finn to lead Nokia -- also declared changes to Nokia's chief board and "substantial" employ cuts.

"Nokia is at a critical juncture, where momentous change is necessary and fateful in our travelling forward," Elop said.

"There module be material reductions in employ in various locations around the world," he told a advise briefing in London, without gift boost details.

The announcements were met with intense dissatisfaction on the hit market, with investors expecting more and with more details.

Nokia's hit winking downbound 14.22 proportionality to 7.00 euros ($9.48) on a Helsinki hit mercantilism downbound 0.70 percent.

Speaking alongside Microsoft honcho chief Steven Ballmer, Elop said the ambulatory sound mart had denaturized from a battle of devices to "a struggle of ecosystems."

That struggle has proved arduous for Nokia, which has over the instance digit eld seen increasing rivalry in the profitable smartphone facet from Apple's iPhone, Research in Motion's (RIM)Blackberry and phones operated by Google's Android operative system.

As part of its newborn partnerhsip with Microsoft, Nokia smartphones module be adopting Microsoft's sound platform.

"I conceive there was a recognition that for something to effectively compete and finally intend against Android and iPhone, it would require whatever big muscle," Elop said.

Even though Elop's story with Microsoft had sparked speculation of whatever category of cooperation, observers had also said Nokia could join forces with Google to intend its hands on the suucessful Android operative system, specially as Microsoft's papers has also struggled against Android or the iPhone.

Espirito Santo Investment Bank said the Android would hit been a meliorate choice.

"We explored the Google ecosystem ... still we felt that we would hit travail stagnant discover of the crowd," Elop said, adding after that connexion with Google would hit felt like "giving up".

"I conceive Nokia feels that with Microsoft, they hit meliorate knowledge to put whatever signaling into the status and development," Handelsbanken shrink histrion Nilsson told AFP.

Nokia itself said the adventure would verify whatever instance before it pays off, warning in a removed evidence on Friday that 2011 and 2012 module be "transition years" as the consort gets the strategy up and running.

In the meantime, it became clear that the consort was in for a stony short term.

"The full-year prospects for its Devices & Services playing are subject to momentous uncertainties," said the company, refusing to issue annual targets for 2011 and action the effect on the long-term goals.

In 2013, Nokia said the shake-up would move stipendiary off, and expects their devices and services gain income to grow faster than the market.

Technology investigate firm Gartner said weekday Nokia's orbicular mart deal had tumbled to 28.9 proportionality in 2010 from 36.4 proportionality in 2009, having erst lidded 40 percent.

In a note to body that emerged Wednesday, Elop warned that Nokia was stagnant on a executing platform," surrounded by a "blazing fire" of rivalry and that it necessary to verify radical action if it was to survive.

The consort declared 1,800 employ cuts terminal Oct discover of its men of more than 132,000 around the world, of which half are in the sound operations.

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