Nokia announced that it is to close a manufacturing plant in Romania with the loss of 2,200 jobs. The majority of the cuts will be at the plant but will include personnel in supply chain operations throughout Europe.
Nokia added a further 1,300 job cuts worldwide with the closure of navigational services, digital mapping and local platforms in Bonn, Germany and Pennsylvania The most recent job losses come on top of the 7,000 job cuts already announced by Nokia back in April through layoffs and outsourcing.
Nokia aims to reduce expenses by ($1.5 billion) by 2013 as competition becomes fierce at the top end of the smartphone market shared with Apple, Google, Research in Motion and the addition of the Asian handset manufactures who are able to produce cheaper phones in the emerging markets.
Nokia said it was closing the Romanian plant because its “high-volume Asian factories provide greater scale and proximity benefits” Nokia went on to say that long-term manufacturing operations in Finland, Hungary and Mexico will be reviewed with the possibility of further job cuts in 2012, no figures were given.
Elop described the situation as “painful yet necessary… We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger”.
Nokia and Microsoft started collaboration in February on the Windows Phone 7 – expected later this month. The hope is that the Windows Phone operating system will regain ground that has been lost to Google’s popular Android platform.
Tags: android, apple, google, Microsoft, Nokia
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