The cuts mean that it will close some research and development projects, including in Ulm in Germany and Burnaby in Canada.
The Finnish phone-maker said it would also close the manufacturing plant in Salo, but would keep its research and development operations there.
The company also confirmed the sale of its luxury phone business, Vertu, to the private equity firm EQT.
Nokia, which will retain a 10% minority shareholding in Vertu, said the sale was the best option for the business.
Nokia is fighting fierce competition from Apple's iPhone and other makers using Google's popular Android software, including Samsung and HTC.
Although it plans to significantly reduce its operating expenses, Nokia says it will focus on smartphones and feature phones and intends to expand location-based services.
Nokia also said that competitive industry dynamics in the second quarter would hit its smartphone sector to a greater extent than previously expected and that no improvement was expected in the third quarter.
Last year, Nokia announced more than 10,000 layoffs, aimed at cutting operating expenses by €1bn (£800m) by 2013.
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