Nokia to cut 4,000 smartphone production jobs

PanARMENIAN.Net - Nokia has said up to 4,000 jobs could be cut from its smartphone production plants across the world, as it continues to adapt its market strategy and cut company costs associated with manufacturing, The Next Web reported.

Announcing the planned changes at its factories in Komarom, Hungary, Reynosa, Mexico and Salo, Finland in a press release, Nokia’s measures “follow a review of smartphone manufacturing operations that Nokia announced last September and aim to increase the company’s competitiveness in the diverse global mobile device market.”

Nokia’s Finnish employees received an email invitation to a briefing on the matter, which commenced at 7am Feb 8.

In September 2011, Nokia said it would “take additional actions to align its workforce and operations” by adjusting its manufacturing capacity across Europe, closing its one of its factories in Cluj, Romania by the end of 2011, shifting output to Asian suppliers that “provide greater scale and proximity benefits”.

Nokia says it would also review the role of its manufacturing operations in Finland, Hungrary and Mexico, factories that were utilized for smartphone production for its European and North American customers. The shift would see the factories move to production of market-specific software and customize sales – which could see operations cut to produce mobile devices that are in-demand in those areas.

Nokia also moved its Asia Pacific headquarters from Singapore to Beijing, China, in order to reduce costs and improve its efficiency.

These three factories planned to focus on smartphone product customization, serving customers mainly in Europe and the Americas. Device assembly was transferred to Nokia factories in Asia, where the majority of component suppliers are based.

Nokia will reduce the number of steps involved in the manufacturing process, meaning that the amount of work carried out at the sites in Komarom, Reynosa and Salo will decrease “substantially”. The company says it will affect as many as 4,000 workers, one of its biggest cuts to date.

Nokia says “personnel reductions are planned to be phased through the end of 2012,” offering those laid-off with a “comprehensive locally-tailored support program, including financial support and assistance with local re-employment”.