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Nokia To Shift Its Production Operations To Asia – 4000 Employees To Lose Jobs

Nokia has today announced planned changes at its factories in Komarom, Hungary, Reynosa, Mexico and Salo, Finland. The 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.

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.

“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 Niklas Savander, Nokia executive vice president, Markets. “We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition.”

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 comprehensive locally-tailored support program, including financial support and assistance with local re-employment.

Nokia is facing the heat from stiff competition and to decrease its expenses, production facilities are being shifted to Asia. Nokia is not in good health at the moment and it is our earnest wish that Nokia will have better times sooner or later. How and When, only coming months will tell.


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