Nokia plans to cut 4,000 more jobs - Hindustan Times
close_game
close_game

Nokia plans to cut 4,000 more jobs

Reuters | By
Feb 08, 2012 04:24 PM IST

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.

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.

HT Image
HT Image


The cuts of 8 percent of the phone business workforce, bring total planned job cuts at the group under Chief Executive Stephen Elop to more than 30,000.

Hindustan Times - your fastest source for breaking news! Read now.


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.



Nokia's Finnish factory in Salo, which was the cornerstone for its success in 1990s, has long been the last phone assembly plant in the Western Europe as most rivals have moved their production to Asia.



"Stephen Elop may be a polarizing figure, but he is proving effective at driving the change and he should be credited for that," Brazier said.



Nokia said it would cut 2,300 jobs in Hungary, some 1,000 jobs in Finland and remaining jobs in Mexico.



On January 26 Nokia reported a 73 percent fall in fourth-quarter earnings after sales of its new Windows Phones failed to dent the dominance of Apple Inc's iPhone or compensate for diving sales of its own old smartphones.



Its smartphone sales shrank 31 percent from a year ago and the business made a steep loss for the quarter.



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 1.3 percent higher at 3.934 euros, slightly outperforming the technology share index which rose 0.6 percent, by 0900 GMT.



"It was well in line with Nokia's previous comments," said Pohjola analyst Hannu Rauhala. "Now they just specified the number of job cuts."

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On