Nokia slashes another 4,000 jobs

FINNISH PHONE MAKER Nokia will cut 4,000 jobs in Finland, Hungary and Mexico to increase its competitiveness in the smartphone market.

The three factories focus on smartphone product customisation, serving customers mainly in Europe and the Americas. Nokia said it expects to transfer its device assembly to factories in Asia, where the majority of component suppliers are based.

The firm said the cuts follow a review of smartphone manufacturing operations that it announced last September.

Nokia announced in April of last year that it would cut 7,000 jobs and in September confirmed a further 3,500 job losses.

"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 EVP of 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 transition."

The job cuts will be phased in through the end of 2012. Nokia said it will offer a comprehensive locally tailored support program for former employees, including financial support and assistance with local re-employment. µ