Mobile phone giant Nokia is set to cut 4,000 of its workforce worldwide in the next two years with an expected 700 job losses in the UK as the manufacturer changes its business strategy.

As the employer announced its restructure, it said the UK workforce was among those that faced “the majority of the job reductions” alongside staff in Denmark and Finland, as the group aims to make savings of £886 million.

The company said posts would mainly be lost in its research and development, and software departments.

Plans for one office closure by the end of 2012 has already been confirmed for the Southwood site, in Farnborough, while the consolidation of other R&D sites is also under consideration.

A further office closure is expected when the lease runs out on the firm’s Southwark premises in London.

This deal is expected to affect a further 3,000 jobs worldwide on top of the 4,000 posts lost.

Stephen Elop, president and chief executive at the mobile maker, said: “We have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions.

“However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia.”