Better Late Than Never for Nokia?

Nokia (NYSE:NOK) is drastically cutting staff numbers as the company burns through cash while trying to keep up with Apple (NASDAQ:AAPL) and Samsung, both of which have stolen some of the Finnish company’s market share in recent years.

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The phone maker announced plans to cut one in five jobs at its global cellphone business on Thursday as it warned that its phone business would post a deeper-than-expected loss in the second quarter due to tougher competition.

While Nokia’s fall from the top began with the smartphone, on which Apple, Samsung, and Google (NASDAQ:GOOG) quickly capitalized, it has also begun to lose market share in cheaper, more basic phones.

CEO Stephen Elop is placing his hopes for a turnaround on the new Lumia line of smartphones, which use Microsoft (NASDAQ:MSFT) software. However, Lumia sales have so far been unimpressive. Nokia stock has crashed more than 70 percent since it announced the switch to Microsoft’s software in February 2011.

The job cuts, which include the complete shutdown of Nokia’s only plant in Finland, bring total planned cuts at the group since Elop took over in 2010 to more than 40,000. The move will result in additional restructuring charges of around 1 billion euros ($1.3 billion) by the end of 2013.

Nokia’s costs of restructuring have been expensive, and at the same time revenue has been dwindling. For that reason, despite it’s dramatic decline over the past year, investors are still concerned the stock could fall even lower.

However, by eliminating some clunkier assets and streamlining, Nokia is making itself a more attractive buy. And a potential acquisition seems the best, and likely only, way to reverse its fortunes.

Shares of Nokia (NYSE:NOK) closed down 15.77% at $2.35 per share on Thursday.

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