Nokia is to cut about 800 jobs in Finland, the company said. And it has confirmed plans to delay launch of its new E7 flagship smartphone model.

The mobile phonemaker said it concluded negotiations with employee representatives on the planned reductions, which it plans to start putting into effect in January.

The latest 800 axings closely follow 1800 job cuts by Nokia worldwide in October, indicating that new CEO Stephen Elop, formerly of Microsoft, believes drastic and immediate surgery is necessary.

The latest delay to the E7 means Nokia will miss the key holiday season in its major markets. The phone is now expected to begin shipping in early 2011.

Nokia said the delay was necessary “to ensure the best possible user experience”.

The E7 is similar to the recently released N8 which was also delayed, but has a pop-up touchscreen and a full keyboard. It replaces Nokia’s Communicator.