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Wednesday, 8 February 2012 - Nokia to axe 4,000 jobs, move assembly to Asia |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Davos 2012 Technology Media Small Business Legal Deals Earnings Summits Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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Credit: Reuters/Kacper Pempel By Tarmo Virki, European Technology Correspondent HELSINKI | Wed Feb 8, 2012 6:34am EST HELSINKI (Reuters) - Struggling Finnish phone maker Nokia plans to cut 4,000 more jobs at its plants in Finland, Hungary and Mexico as it seeks to cut costs by moving smartphone assembly work to Asia. The cuts of 8 percent of the phone business workforce bring total planned job cuts at the group since Stephen Elop took over as Chief Executive in September 2010 to more than 30,000. Nokia said in a statement the job cuts would take place in phases through this year. It has been reviewing the operations since unveiling the closure of its Romania plant last September. "This was inevitable. It was a surprise it took so long for the decision to be made," said Steve Brazier, chief executive of technology research firm Canalys. "Stephen Elop may be a polarizing figure, but he is proving effective at driving the change and he should be credited for that." Nokia's recent business results have underscored the need for drastic cuts. Late last month it reported a 73 percent fall in quarterly earnings as sales of new Windows Phones failed to dent the dominance of Apple Inc's iPhone or compensate for diving sales of its own old smartphones. Its fourth-quarter smartphone sales shrank 31 percent from a year ago and the business made a steep loss for the quarter. NO MORE PHONES BUILT IN EUROPE Nokia said it would cut 2,300 jobs in Hungary, where it is a major exporter, some 1,000 in Finland and 700 in Mexico. It will continue to tailor models for specific operators at all sites. Its Finnish factory in Salo, which was the cornerstone for its success in 1990s, has been the last remaining major phone assembly plant in the Western Europe for some time. Most rivals have moved their production to Asia. The Hungarian government said it regretted Nokia's decision. Analyst Gergely Suppan at Takarekbank in Budapest noted the highest value-added activities would stay in Hungary. The move comes only months after Nokia closed its plant in neighboring Romania, laying off some 2,200 people there. Finnish unions demanded hefty cash payments to laid-off staff and Antti Rinne, chief of union Pro, said the announcement was damaging for Finland's employment outlook. "Raising the employment level and prolonging working careers is impossible if there are no jobs in Finland," Rinne said in a statement. Finland has pushed for years to prolong working careers as the Nordic country struggles with a shrinking work force and sluggish economic growth. Nokia announced in April last year it would cut 7,000 jobs and unveiled a further 3,500 job losses in September. Its network arm Nokia Siemens announced cuts of 17,000 in November. The group had 130,000 staff at the end of 2011, including Nokia Siemens. Shares in Nokia were 1.2 percent higher at 3.93 euros, slightly outperforming the technology share index which rose 0.3 percent, by 5:53 a.m. ET. (Additional reporting by Terhi Kinnunen in Helsinki and Gergely Szakacs in Budapest; Editing by Helen Massy-Beresford and Jodie Ginsberg) Tech Media Mexico Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (3) sukebe wrote:   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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