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
Whom are you kidding?
2/12/2012 5:35:16 PM
They moved the plant from Mexico because there weren't enough workers to grow the labor force. They would rather migrate north and become illegal aliens.
"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
Apple's "iBeacon" Tracks Customers Inside Apple Stores for Enhanced Shopping Experience
December 6, 2013, 11:26 AM
Apple Says 74% of Its Mobile Devices Now Run iOS 7
December 6, 2013, 10:06 AM
Apple and Samsung See Virtual Tie in Q3 U.S. Sales, Nokia Seizes Fourth
December 5, 2013, 8:00 PM
AT&T Goes After T-Mobile with Reduced Off-Contract Prices, New Base Rates
December 5, 2013, 11:28 AM
MSI Unveils 3K Resolution GT60 Gaming, Workstation Notebooks
December 5, 2013, 11:00 AM
No iPhone for Obama Due to Security Concerns
December 5, 2013, 9:57 AM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Hackers Nab 2 Million Login Credentials from Facebook, Gmail, Twitter
December 5, 2013, 1:00 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Experts: Masturbation Prevents Cancer, Diabetes, Insomnia, and Depression
December 6, 2013, 2:01 PM
Thieves Steal Truck with Cobalt-60 Onboard in Mexico, Will Die "Without a Doubt" from Exposure
December 5, 2013, 12:04 PM
Latest Blog Posts
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
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information