Nokia will shut down two of its four sales offices in China as it restructures to cut losses amid a decline in sales of its smartphones.

The affected branches are in Chengdu and Shanghai, a company spokesperson confirmed.

Nokia did not specify the number of jobs that would be cut. It will consolidate its operations in Guangzhou and Beijing.

Nokia’s share of the smartphone market declined in China as users opted instead for Apple and Samsung handsets – and Chinese smartphone brand. Its share has plunged from 30.4 per cent in the second quarter of 2011 to just 11 per cent over the same period in 2012. 

The closures are also in line with the company’s global reorganisation which involve 10,000 jobs cuts and a major management shake-up.

“As part of the announcement and planned changes that we made on June 14, we are reviewing some elements of our China business,” Anna Shipley, a Beijing-based Nokia spokeswoman, said in an e-mail.

Nokia, with 20.8 per cent market share, is the world’s second biggest mobile phone maker during the first quarter, behind Samsung with 23.5 per cent. But the majority of its sales are of low value handsets for developing countries rather than high value smartphones. Apple has just an 8.8 per cent share of the global phone market, but with only one core handset model.

GB