Nokia Announces Major Layoffs

With an aim to improve its competitiveness, the Finnish mobile company announced on Wednesday that the company is going to shed 4,000 jobs or 7% of its global workforce, with an aim to move its manufacturing facilities to Asia.

The layoff will affect workers in three of the company’s facilities, including Salo, Finland; Komarom, Hungary; and Reynosa, Mexico. In a release, Nokia claims that these facilities will now focus on smartphone product customization. It was also mentioned in the release that the device assembly which had been executed at the facilities previously, will now be moved to Asia “where the majority of component suppliers are based.”

The laying off will continue throughout the year.

Nokia had already announced its intentions to ‘align’ its workforce earlier in September – halting operations in its facility in Cluj, Romonia was part of that announcement. However, the company didn’t hint towards this sort of cut off in any of its previous announcement.

The layoff comes at the time when Nokia is looking to transit from the Symbian-based mobile phones to Luma running Windows Mobile. Unfortunately, the Finnish mobile company lost $1.4 billion in the fourth quarter as company saw a drop of 21% from the previous year.

Considering the continuous cycle of its falling market shares forced Nokia to cut jobs in April of last year that resulted in the loss of 4,000 jobs in Denmark, Finland and Britain.  Moreover, the company also shifted its 3,000 workers working on Symbian to Accenture.

The stock price of Nokia was up by 1% on the news on Wednesday afternoon, EST.

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