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Nokia slashes a further 4,000 jobs and moves production to Asia

WP Central

Nokia has announced plans to slash a further 4,000 jobs by closing down plants in Hungary, Mexico and homeland Finland. The cuts come to light as the handset manufacturer begins to shift production to Asia. As we mentioned with the previous 3,500 positions being hung up to dry, these plants have been under review since.

The cuts include 2,300 in Komarom, Hungary, 700 in Reynosa, Mexico, and 1,000 in Salo, Finland. The Finnish handset maker has had to take drastic measures to cut down costs and reach saving targets, and Salo (the oldest production facility - 1979) has not been spared from this round of job cuts.

Riku Aalto, chairman of the Finnish Metalworkers' Union, has stated that the company will look at possibly providing 12 months of training for new jobs to the fired workers, following its model of the Bochum closure in Germany, in 2008.

Source: Bloomberg



There are 28 comments. Sign in to comment

Bigsro says:

Ouch! That's real sad to read, bad times indeed. Quite a few of my friends have been made redundant lately so I kind of understand what they will be going through.

HeyCori says:

Terrible news, but that's what happens when you combine cheap labor with maximizing profits.  On the upside, at least those jobs aren't completely gone from the global economy. 

hammerhand says:

The global economy is a bunch of crap. It's a pity these jobs will go from paying a decent wage to paying someone cents a day.

EJNelly says:

I'm with you. I've been saying the global economy is a sham sold to us by execs and shareholders in order to maximize their earnings. All the while turning every country on earth into a third world hell hole.

lippidp says:

You got it. Don't forget about our wonderful leadership in Washington. They are in on this sham. Republicans and Democrats alike.

kevm14 says:

These places were already third world hell hole.  Factories like this, as deplorable as they are to us, generally ADD employment opportunity to depressed regions...until they are fully industrialized and have the standard of living they are working toward.  Then the cheap labor moves somewhere else.  It's the way the world works.

elisaur says:

Would this hurt the build quality of Nokia phones? =/

selfcreation says:

is int that good news???  ,, closing down high cost places to move to a cheap high selling market...  it sounds like they are closing down in does 3 places to open a bigger place in asia..
this means more cash for nokia , more sales , more productivity.  sucks for the 4000people losing the jobs ,, but good for the rest of nokia.

NokiaNow says:

Thats what happens when Finns buy Apples and Androids.

blackprince says:

China Inc is back at it again

whattheduece says: free kindle fire. all you have to do is leave a comment. not spam. it's legit.

Stop posting this crap here.

mjrtoo says:

Let's hope it's not Foxconn...

lippidp says:

Nokia was a Foxconn client before this announcement.

rodneyej says:

Can't they get a government bail out? That's the American way, at And, if this damn keyboard keeps dropping, while I'm trying to type this message, I'm going to start laying people off at Att, Samsung, and MS!

ognjen23.11 says:

bail out? err, they're not bankrupt

And there goes quality... Unless they can convince someone to take pride in their manufacturing at 0.18¢ a week. Or they can just take the first few hires out back and shoot then to make an example for the rest.

1jaxstate1 says:

Elop sent engadget a message saying that the plant in Mexico will be unaffected.

ejlee072006 says:

Nothing new to this story, Nokia has been selling Chinese made phone since 1997.. I remember my first Nokia phone 3210.. It was like the iphone in the Philippines its a must have phones back then,and people think that the Finland made are much better, cuz the pricing was higher. I just hope the quality of this lumias will be high.. People in third world country will buy nokias in a heartbeat. Even china a first world country will benefit to the Nokias roll out, Chinese people are very excited about the windowsphone/Nokia/lumias

ejlee072006 says:

First of all Nokia is not an American brand so why people crying over this??? 2nd of all this is a smarter move by the CEO.. They have to increase production faster and cheaper to meet customers needs, everything is made in the CHINA now and it will remain like that till we all die... If you want American made??? FOOD.. PRODUCT OF THE USA...

Actually, much of your food is made by us neighbors to the north. ;)

willied says:

Where are the Lumias currently made?

ynnihC says:

Good move on the part of Nokia. Now they can finally stop spending too much money, and concentrate on making a nice phone like Apple does.

ynnihC says:

@missionsparta: dude they make iPhones in china and they are of the highest quality. Stop being so ignorant.

norville2 says:

If it is good enough for Apple and makes them the sort of profits they are making, then that is what needs to be done to compete....saying that the prices of Iphones are not cheap.

willdoors says:

I was going to buy a nokia but now I see this news..... nokia you suuckkk..... firing a lot of people and going to asia to employee people and give them coins? I hope US government bans importations from Asia and you won't sell a single phone.... nokia you thiefs!