Nokia plans to lay off most of its employees and shut down sites in China by the end of the year as it gradually withdraws its 40-year operations from the mainland, South China Morning Post reported Tuesday.

The Finland-based telecommunications company's mobile networks and network infrastructure businesses are expected to cut the workforce in batches, but it is not clear how many would be affected by the move, the report said, citing people familiar with the matter.

The layoff was announced in an internal online video conference at its Helsinki headquarters earlier in the month, the sources reportedly said.

A spokesperson for the company told the SCMP that it is adjusting its operational footprint in the mainland because business in the country has steadily declined in the last several years, but did not confirm the reported layoffs.

Nokia did not respond to MT Newswires' request for comment.

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