Nokia to Axe 4,000 Workers, Looks to Asia for Manufacturing
February 8, 2012 10:45 AM
comment(s) - last by
Job cuts are expected to be complete by the end of 2012
The mobile phone world hasn't been kind to Nokia over the last year or so. While the company is still the biggest seller of mobile phones in the world, the vast majority the phones that it sells or lower profitability basic phones and feature phones. Nokia has so far been unable to compete in the high-end and
profitable smartphone market
Nokia, however, today announced some significant changes to its manufacturing operations.
Nokia intends to institute significant changes at factories in Komarom, Hungary, Reynosa, Mexico and Salo, Finland. The three factories will focus on smartphone product customization and the products at the locations will be sold in Europe and the Americas. Device assembly will be transferred to Nokia factories that are in Asia since that is where the vast majority of component suppliers are located.
"With the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers. They give us a unique ability to both provide customization and be more responsive to customer needs," said Niklas Savander, Nokia executive vice president, Markets.
The changes mean a significant decrease in manufacturing and the amount of work to be carried out at these three locations. Because of reduced output, Nokia will be getting rid of 4,000 employees between all three facilities. The layoffs are intended to be phased throughout the year and will be completed by the end of 2012.
Nokia also notes that it will offer a support program tailored to each location that will include monetary assistance and help finding another job locally.
"Shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive," said Savander. "We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition."
This article is over a month old, voting and posting comments is disabled
RE: LOL what a load of BS
2/8/2012 11:58:38 AM
I just checked and it does not cost $900. For a second there I thought I got a deal at £400. The price seems roughly equivalent to iPhone 4S.
For what it is worth I have an iPhone 4 and my partner has the Lumia 800. Both are very nice phones :)
"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs
Nokia Makes Very Soft "Aggressive" Launch of Lumia 900 LTE Windows Phone
January 9, 2012, 6:50 PM
UK Teachers Want Parents to Cut-Off Their Children's Internet, Tablet Use at Night
April 17, 2014, 3:40 PM
Quick Note: Chrome Remote Desktop App for Android Launches
April 17, 2014, 9:26 AM
Report: Apple Plans to Integrate Shazam Song Finding Functionality into Siri
April 17, 2014, 9:15 AM
Bring Your Own Battery: LG Isai FL Likely is G3, First U.S. Quad-HD Android
April 16, 2014, 7:38 PM
Project Moonshine: Google's Plan to Flatten Android App Icons Leaks
April 16, 2014, 1:46 PM
Apple, Microsoft, and Major U.S. Wireless Carriers Embrace Smartphone "Kill Switch"
April 16, 2014, 10:08 AM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
iPad Exploiter is Freed by Federal Appeals Court
April 11, 2014, 7:40 PM
A-10 Warthog May Live to Fight Another Day with Support from Lawmakers
April 14, 2014, 9:41 AM
Taiwan's AOU Claims to Have World's Highest-Res. OLED Smartphone Display
April 11, 2014, 1:44 PM
EFF: NSA May Have Used IRC Botnets to Exploit Heartbleed for Last Two Years
April 14, 2014, 4:43 PM
Latest Blog Posts
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information