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Nokia to cut 4000 jobs
Nokia to cut 4000 jobs
| Published: | 9 Feb at 10 AM |
Finnish mobile phone producer Nokia announced on Wednesday that it was to cut 4,000 jobs at plants in Finland, Hungary and Mexico, reports the BBC.
The company said that the plants would stay open but refocus on customising phones and that the actual assembly was moving to China and South Korea. The cuts are scheduled to be complete before the end of this year. Nokia explained that the decision to make the move was so its production moved nearer its Asia-based component suppliers.
The cuts come just two weeks after the firm delivered a 1.08bn euro ($1.4bn; £905m) loss for the three months leading to the end of December. The Finnish company reported that there was a drop of 21 per cent in net sales on the previous year to 10bn euros, while mobile phone net sales had fallen by a quarter.
Nokia, once the largest producer of mobile phones in the world, announced a link-up with Microsoft in 2011 in the face of tough competition from the new smartphone generation including Samsung’s Galaxy and Apple’s iPhone. At the time Stephen Elop, Nokia’s chief executive, likened the company’s situation to being stood on a “burning platform”.
In September last year the firm announced that job cuts were due to be carried out and mentioned planned reductions to its European facilities. With the most recent job losses taken into account, the company has cut 14,000 jobs since 2010.
The company said that the plants would stay open but refocus on customising phones and that the actual assembly was moving to China and South Korea. The cuts are scheduled to be complete before the end of this year. Nokia explained that the decision to make the move was so its production moved nearer its Asia-based component suppliers.
The cuts come just two weeks after the firm delivered a 1.08bn euro ($1.4bn; £905m) loss for the three months leading to the end of December. The Finnish company reported that there was a drop of 21 per cent in net sales on the previous year to 10bn euros, while mobile phone net sales had fallen by a quarter.
Nokia, once the largest producer of mobile phones in the world, announced a link-up with Microsoft in 2011 in the face of tough competition from the new smartphone generation including Samsung’s Galaxy and Apple’s iPhone. At the time Stephen Elop, Nokia’s chief executive, likened the company’s situation to being stood on a “burning platform”.
In September last year the firm announced that job cuts were due to be carried out and mentioned planned reductions to its European facilities. With the most recent job losses taken into account, the company has cut 14,000 jobs since 2010.
