Finnish phone maker Nokia has announced it will slash 3500 jobs as it continues to ‘align its workforce and operations’.

The move will affect workers in Romania, Germany, and the US, and comes on top of plans announced in April to cut 4000 employees from its operations in Denmark, Finland & the UK.

Both reductions are scheduled to take effect by the end of 2012.

Nokia president and CEO, Stephen Elop, says the cuts are ‘painful, yet necessary’.

"We are seeing solid progress against our strategy,” Elop says, "and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger.”

The biggest losses are in Romania, where 2200 people will lose their jobs with the closure of the factory in the city of Cluj. Nokia says its high-volume Asian factories provide greater scale and proximity benefits.

As for the future, Nokia is still reviewing its manufacturing operations in Hungary, Mexico, and its home country, Finland. The company expects to make the call on these locations in the first quarter of 2012. Any further losses, particularly at home, will have huge significance for the company touted by many as a model technology business.