Nokia Plans 4,000 Job Cuts

Posted: 08/02/2012 in Marketing
Tags: , , , , , , ,

Nokia Oyj will eliminate 4,000 jobs, including at its oldest factory in Finland, as the mobile-phone maker shifts manufacturing to Asia, its largest market.

The firings add to more than 10,000 job cuts Chief Executive Officer Stephen Elop has announced since Nokia linked up with Microsoft Corp. (MSFT) a year ago to fight a loss of smartphone market share to Apple Inc. (AAPL) Nokia’s first handsets based on Microsoft’s software, called Lumia, were assembled at a Compal Communications Inc. (8078) factory in Taiwan.

Apple, which introduced the iPhone in 2007, already assembles the smartphones in China. Nokia is building a plant in Vietnam to manufacture entry-level handsets and a site in Dongguan, China, makes about a third of all of the company’s output, according to Nokia’s website.

Nokia’s smartphone sales declined 25 percent to 77.3 million units last year as customers shunned the Symbian line. Nokia introduced Lumia handsets running Windows Phone six weeks before the end of the year and said on Jan. 26 that it had sold “well over” 1 million of the devices “to date.”

Nokia Siemens Networks, the wireless-equipment venture with Siemens AG (SIE), announced 17,000 job cuts on Nov. 23 as it narrows its product lines in an effort to become profitable.

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