Nokia "consolidates" its business; cuts 3,500 jobs

Nokia’s woes are continuing, as today the company announced that it would be “improving efficiencies in manufacturing, Location & Commerce, and supporting functions.” This of course means job losses at Nokia, with an expected 3,500 employees to lose their jobs by the end of 2012, and this isn’t the end as Nokia plan on reviewing production operations at several other locations.

These job cuts come from two areas: the closure of the Location & Commerce businesses in Bonn, Germany and Malven, US; and the closure of the massive Cluj manufacturing plant in Romania by the end of 2011. The cuts from these closures are 2,200 people and 1,300 people respectively. Further, Nokia stated that it will be reviewing the “long-term role” of their Finland, Hungary and Mexico manufacturing plants, which could lead to more job cuts.

Nokia President and CEO Stephen Elop said in the press release:

We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger. We must take painful, yet necessary, steps to align our workforce and operations with our path forward.

These job cuts are in addition to 4,000 already announced earlier this year, which will amount to 7,500 job losses by the end of 2012. However, business at Nokia may pick up over the coming months and years, as the company plans on launching their new Windows Phone smartphone range very soon, meaning that less job cuts are necessary.

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12 Comments

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I regret supporting these jerk offs for over 14 years. The 3,500 unemployed people should thank Elop, the king of ****ing FAIL.

They can even give their phones out for free and I still won't ever use Nokia again.

So wait, moving exclusively to Windows mobile hasn't been good for employees (They all got fired), it hasn't been good for developers (all their hard work and code was essentially snubbed), it hasn't been good for customers (there's no future for existing devices) and it hasn't been good for the business (both marketshare and market value have dropped). I have to wonder - who IS benefiting from this move? Aside from Microsoft.

Kushan said,
it hasn't been good for customers (there's no future for existing devices)

Nokia has been up the creek without a paddle for a while now. The switch to Microsoft will be a do or die decision for them.

Either way you look at it Symbian was a dead horse which is only fit for their lower powered smart phones. They then scrapped Maemo within months of releasing one of their most powerful devices (and still to date imo their best phones) killing of a lot of their power horse fanboys and their own indecisiveness means Meego has gone down the same route.

Either way their stuck without a decent smartphone platform and getting their arse handed to them on a plate by the competition. Biting the bullet and using one of the larger OSs was their only choice.

Until/If WP7 flops then you can't say that their is no future in it. If it does their probably take the last ditch attempt and go to Android.

Nokia is a perfect example of a company who got to the top by innovating then sat on their a** and did virtually nothing until it was too late. They learnt the hard way that the technology market doesn't work like that. Hopefully Apple will follow suit now everyone has caught up to their iDevices.

your thinking short term.. thats like saying ibm stopping making hardware was bad for everyone at the time.. but now they are a thriving business

look at an example where their are no changes, RIM has stuck to their guns and they are getting hurt even worse because they have no plan at all right now other then keep pumping out phones.

Yeah, they're closing their factory in my country too, after just 3 years. 1200 people will be out of jobs. That sucks.

TDT said,
Yeah, they're closing their factory in my country too, after just 3 years. 1200 people will be out of jobs. That sucks.

Nokia is a nomad.
NEVER count on their words when it comes to jobs or facilities.

They effed with us here in Germany BIG TIME.
I used to be a big Nokia fan, now I stay away from then and am happy to have overcome Symbian haha.
Rock on iOS.

Oh by the way: I adored their hardware quality, really a shame they pull off these things over and over again.

I'm not talking firing in general, I'm talking being REALLY (planned!) dishonest with people, state administrations and so on.

I hope they get their 2 pieces of ethics back together and get a swing up with WP7, as a good hardware company and a solid mobile OS come together, it'd be a shame to have this at today's Nokia.

GS:mac

Amazing how 'improving efficiency' is code for 'firing people'.

Each time this happens? the company loses as many customers for life, as employee's they just fired.

crashguy said,
Amazing how 'improving efficiency' is code for 'firing people'.

Each time this happens? the company loses as many customers for life, as employee's they just fired.

I dont know how that is amazing. Most large companies could improve efficiency by firing people. They've overhired and havent compensated for the market since. Now they have to do mass layoffs. It sucks, but you can't magic legitimate work for all those people if it is just not there. If it's not there, youre inefficient.

crashguy said,
Amazing how 'improving efficiency' is code for 'firing people'.

Each time this happens? the company loses as many customers for life, as employee's they just fired.

well it is.. all companies have bad employees and other rating companies rate how efficient they are.. therefore by firing the bad or not needed employees you can be more efficient..

think of it as if you owned a farm and had 100 guys working.. where as 50 people were actually working the field and the other half were hanging out because of the lack of work.. by firing the half not doing anything you are doubling the efficiency per employee