Nokia will close the research and development center in Jyvaskyla, southern Finland, by the year-end, the world's largest mobile phone maker said. All 320 people working there will be affected, it said.
The Finnish company is also planning to temporarily lay off some 2,500 workers at a plant in Salo, on the southern coast, although production there will continue.
The changes reflect reductions in market demand for the company, which has seen a decrease of 42% in its profits.