Moody's ratings agency has downgraded Nokia Corp.'s debt grade to junk status, citing greater than anticipated pressure on the struggling cellphone maker's earnings after it announced plans for major cuts and global layoffs. and says the outlook remains negative.

The agency has lowered the Finnish company's long-term senior unsecured ratings to Ba1 from Baa3 and left the outlook negative, saying Nokia's "far-reaching restructuring plan, which involves drastically downsizing its infrastructure," was greater than expected.

However, the agency said Friday that it sees Nokia's restructuring as necessary for it to return to profitability.

The downgrade came a day after Nokia said it will slash 10,000 jobs, close plants and gave a grim outlook for most of the year.