Nokia N95

As the economy takes its toll, everyone is feeling the effects. Nokia, is no exception as they're reporting some heavy losses to profit during the fourth quarter of 2008.

Net Profit was down $2.39 billion, from Nokia's profit in 2007. Actual sales plummeted from $20.5 billion, to $16.4 billion.

Nokia commented on the bleak numbers, in typical fashion, "We are taking action to reduce overall costs and to preserve our strong capital structure. This is clearly our top priority in the current economic environment...In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry."

If you read between the fine print, this could definitely mean layoffs for Nokia. It doesn't necessarily mean that they'll be giving layoffs or giving them exclusively. Actually, Nokia promises to reduce production costs of handsets dramatically to ease the economic burden.

Here's hoping that the production costs are enough to keep all of the Nokia workers employed 

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