Nokia to cut thousand more jobs and its struggle continues
Wednesday, 08 February 2012
Mobile giant Nokia announced on Wednesday morning that it will end all device assembly at its factory in Salo, south-western Finland. Nearly 1,000 people will lose their jobs, or about half of manufacturing staff at the plant.
The change will also affect plants in Hungary and Mexico. All assembly will be shifted to the company's factories in Asia. The facilities in Europe and Mexico will concentrate on smartphone product customization for Western markets.
"With the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers," said Niklas Savander, Nokia's Executive VP, Markets, in a statement. "They give us a unique ability to both provide customization and be more responsive to customer needs."
The company says the moves will affect some 4,000 employees in the three countries. Job cuts will be carried out by the end of this year.
On January 26 Nokia reported a 73 percent fall in fourth-quarter earnings after sales of its new Windows Phones failed to dent the dominance of Apple Inc's iPhone or compensate for diving sales of its own old smartphones according to Reuters.
Nokia also announced in April last year it would cut 7,000 jobs and unveiled a further 3,500 job losses in September. Its network arm Nokia Siemens announced cuts of 17,000 in November.
By Scancomark.se Team