Thursday, February 9, 2012

Nokia to cut 4,000 Jobs at Smartphone Factories

Finnish major Nokia announced that it would cut 4,000 jobs or 7 percent of its global work force at its three factories as the assembly of smartphones will be transferred to Asia.

The company in a statement on Wednesday said that the job cuts would be made at three factories in Komarom, Hungary; Reynosa, Mexico; and Salo; Finland. The device assembly will be transferred to Asia targeting better production and introduction of innovations into the market more quickly.

The mobile major said that 2,300 jobs will be cut at its Hungarian factory, 700 in Mexico and 1,000 in Salo. Nokia executive vice president Niklas Savander said that the company would be able to work more closely with the suppliers by the move.

The decision was taken after Nokia faced a huge financial crisis during the transition from its Symbian-based Smartphone lineup to Lumia Windows phones with Microsoft. The company had a loss of $1.5 billion last month and its sale declined 21 per cent after the operators complained of the Symbian models and demanded price cuts.

Last September, the Company had hinted that it would review the production of the smartphones and consider the cost reduction on the models.

Now Nokia's smartphone factories in Masan, South Korea and Beijing will take over the assembly of smartphones in Asia continent.

This is for the second time Nokia announced for the job cuts. Earlier, the firm had announced in April last year that it would cut 4,000 jobs in Britain, Denmark and Finland, and transfer 3,000 employees in Symbian software development to Accenture.

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