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 3:22:11 PM
Not necessarily, there is still a good amount of production in Taiwan. Surprisingly, Foxconn is considering opening new plants in Taiwan. Business is booming for the Chinese.
"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken
Nokia Makes Very Soft "Aggressive" Launch of Lumia 900 LTE Windows Phone
January 9, 2012, 6:50 PM
Finished Apple Watch Expected to be Showcased at"Spring Forward" Mar. 9 Event
February 26, 2015, 12:17 PM
Google Preps Pixel 2 ChromeBook, New X Server Replacement "Freon"
February 24, 2015, 11:12 PM
Report: Samsung Semiconductor Bounces Back w/ iPhone SoC and Memory Orders
February 24, 2015, 1:40 PM
Comcast Borrows Apple's Branding Flourishes for Its Remotes
February 24, 2015, 11:32 AM
NVIDIA Bows to Outraged Overclockers, Will Restore Feature in Upcoming Driver
February 23, 2015, 12:30 PM
BlackBerry Wages Legal War Against Ryan Seacrest's Typo 2 iPhone Keyboard
February 18, 2015, 5:24 PM
Most Popular Articles
Google Steps up Snub of Adobe Flash, Auto-Converting Flash Ads to HTML5
February 25, 2015, 6:16 PM
HTC's Sense UI is Garbage: A Tale of Disappearing Keyboards and Desperate Fixes
February 24, 2015, 11:00 AM
StarDock Unveils Start10 Start Menu Replacement for Windows 10
February 25, 2015, 11:24 AM
FCC Bans Data Discrimination, Defies Comcast, Adopting Net Neutrality Regulation
February 26, 2015, 4:03 PM
Cool Nature Video: Crazy Coconut Octopus Braves Dry Land to Capture Crab
February 24, 2015, 4:18 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information