By Telecom Lead Team: Mobile giant Nokia announced plans to
shift its device assembly facilities to Asia from Europe. The decision will
impact 4,000 jobs in Europe.
Employees at its factories in Komarom, Hungary, Reynosa,
Mexico and Salo, Finland will be affected. The measures follow a review of
smartphone manufacturing operations that Nokia announced last September and aim
to increase the company’s competitiveness in the mobile market.
These three factories will 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.
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.
The cost cutting effort is in line with Nokia’s plans to reduce its Devices and Services
operating expenses. Nokia targets to exceed its previous Devices & Services
operating expense reduction target of EUR 1 billion for the full year 2013,
compared to the full year 2010 Devices & Services operating expenses of EUR
Nokia to cut 3,500 jobs, close down Romanian plant
Recently, Nokia announced its plans to cut 3,500 jobs
in its technical operations in Europe and the US. The company will also cut
jobs in sales, marketing and corporate functions globally.
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Last year, Nokia Siemens Networks also decided to cut
its global workforce by approximately 17,000 by the end of 2013 from
The job cut is part of the company’s restructuring plans in
order to save operational expenditure. As per the restructuring, Nokia Siemens
will focus on mobile broadband and services business. It will also look at
divesting businesses which are not viable.