Nokia to cut 4,000 jobs in Hungary, Mexico and Finland, assembly to be transferred in Asia

By on Feb 9, 2012 in Asia, Business, Europe Comments

Nokia plans to cut 4,000 jobs in Hungary, Mexico and Finland, with assembly lines to be transferred to Asia, where most of their component suppliers are based; a move by the company that aims to increase its smartphone production efficiency.



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Image Credit: Nokia

As noted by Nokia on its official website on Wednesday, February 8, 2012, its manufacturing plants in Komarom, Hungary; Reynosa, Mexico and Salo, Finland will not be closed but will focus more on smartphone product customization.

According to the Finnish cell phone company, the said cutting of manufacturing jobs will be gradual that will go through the end of 2012, and a comprehensive support program, including financial support and assistance with local re-employment will be provided to the affected employees.

“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,” Nokia Markets EVP Niklas Savander was quoted on the report.

“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,” Savander added.

Back in April 2011, Nokia also announced its plan to cut 4,000 jobs worldwide and will partner with Accenture to transfer software work load to Symbia, while another 3,500 jobs will be cut with around 2,200 of them will be coming from Romania.

Nokia launched the Nokia Lumia 800 and 710 smartphones, its first Windows smartphones, late last year and reportedly sold over 1 million units of them, which the white Nokia Lumia 800 to be coming out soon. The Nokia Lumia 900 was unveiled early last month and is being expected to be out in the coming months.

Nevertheless, Nokia was also noted to have lost about $1.5 billion last year, while its fourth-quarter earnings dropped about 73 percent from the previous year, after it sold 93.9 million mobile phones down from 95 million on the same quarter of the year before.



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