Nokia plans to cut 4,000 more jobs at its plants in Finland, Hungary and Mexico as it seeks to cut costs by moving smartphone assembly work to Asia.
The measures follow a review of smartphone
manufacturing operations that Nokia announced last
September and aim to increase the company's
competitiveness in the global mobile device market.
These three factories are planned to focus on
smartphone product customization, serving customers
mainly in Europe and the Americas. Device assembly is
expected to be transferred to Nokia factories in Asia,
where the majority of component suppliers are based.
"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," said Niklas
Savander, Nokia executive vice president, Markets.
"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," said Savander. "We
recognize the planned changes are difficult for our
employees and we are committed to supporting our
personnel and their local communities during the
As a consequence of the plans, the number of steps in
manufacturing and the amount of work carried out at
the sites in Komarom, Reynosa and Salo are expected to
decrease substantially. The changes are anticipated to
impact approximately 4,000 employees in total.
Personnel reductions are planned to be phased through
the end of 2012. Nokia will offer a locally-tailored
support program, including financial support and
assistance with local re-employment.