He added that Nokia plans to invest more in developing the flagship Lumia handset, and that two-thirds of this development is taking place in Finland.
The phonemaker is buying imaging technology and specialists from Scalado, based in the southern Swedish town of Lund.
During a half-hour press conference at Nokia headquarters in Espoo, Elop said that Lumia phones are selling better on a week-by-week basis, but that was virtually the only good news on offer on Thursday.
At the press conference, Nokia's leadership stressed the ongoing importance of the Salo facility, although some 80 percent of its staff is being made redundant.
"Nokia's core product development will remain in Salo," said Juha Äkräs, Nokia's Executive Vice President, Human Resources.
He said Tampere and Oulu will also retain strategic importance, he said.
Elop said redundancy talks would begin immediately, but that it remains unclear exactly how the number of reductions will break down among the company's various locations in Finland.