Nokia’s New Plans to Impact 4,000 Employees

RMN Digital | February 9, 2012 | Corporate, Europe, Regions, Strategy | No Comments

Mobile phone maker Nokia said Wednesday, Feb. 8, it has planned changes at its factories in Komarom, Hungary, Reynosa, Mexico and Salo, Finland.

The measures follow a review of smartphone manufacturing operations that Nokia announced last September and aim to increase the company’s competitiveness in the diverse global mobile device market.

These three factories are planned to focus on smartphone product customization, serving customers mainly in Europe and the Americas. Device assembly is expected to be transferred to Nokia factories in Asia, where the majority of component suppliers are based.

[ Also Read: Nokia Sells 1.5 Billion Series 40 Mobile Phones ]

As a consequence of the plans, the number of steps in manufacturing and the amount of work carried out at the sites in Komarom, Reynosa and Salo are expected to decrease substantially. The changes are anticipated to impact approximately 4,000 employees in total.

Personnel reductions are planned to be phased through the end of 2012. Nokia will offer a comprehensive locally tailored support program, including financial support and assistance with local re-employment, says the company.

Earlier, Nokia announced plans to form a strategic collaboration with Accenture that would result in the transfer of Nokia’s Symbian software activities, including about 3,000 employees to Accenture.

In addition, Nokia also planned to reduce its global workforce by about 4,000 employees by the end of 2012, with the majority of reductions in Denmark, Finland and the UK. (Read: Nokia to Lay Off 4,000 Workers to Cut Costs)

“With the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers. They give us a unique ability to both provide customization and be more responsive to customer needs,” said Niklas Savander, Nokia executive vice president, Markets.

“Shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive,” said Savander. “We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition.”

Photo courtesy: Nokia