Nokia to lay off 4,000 more employees by end of 2012

Nokia will be giving more of its team members pink slips in 2012. In a press release today, the smartphone company revealed its plans to make changes at its mobile phone factories located in Komarom, Hungary, Reynosa, Mexico and Salo, Finland. The changes will result in the layoffs of 4,000 Nokia team members by the end of the year. These layoffs are in addition to the ones that Nokia first announced in September 2011 when it revealed that 3,500 of its workers would be given their walking papers.

Nokia said today that the three factories in Hungary, Mexico and Finland will now focus their energies on smartphone product customization for countries located in Europe and the Americas. The actual device assembly work will be transferred over to factories located in Asia.

According to Nokia's executive vice president Niklas Savander:

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. 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.

This latest news follows word in January that Nokia lost another $1.2 billion in the fourth quarter of 2011 as the company tries to regain its once high status in the mobile phone industry via its recently launched Lumia line of Windows Phone-based smartphones.

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24 Comments

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what is so great about the Lumia that it can lure me away from Galaxy S2 or Sensation XE? i see none, so it won't be a hit success.

Apart from the fact 4000 people will be out of work (which will be felt even more in this economic situation), from a consumer point-of-view, as long as build quality doesnt drop, i dont mind.

It is a shame though to see Nokia moving to Asia. They must be the last major mobile phone manufacturer to move all device assembly to the continent

There's no jobs lost, they are moved to a location which offer the same work at a better price to Nokia. Sure this will mean that people will loose their jobs, but not that Nokia is reducing capacity.

That's not good.. If the Windows Phone + Nokia thing was a huge success you would add manufacturing jobs not get rid of them.

If I'm honest I was tempted to get a nokia lumia phone, liked them because it's decent pay for workers but after hearing this...
They've been given millions from MS, and the lumia line is obviously doing well, and they still shaft their workers... Oh hello mr dyson #2.

Well since Apple will not be able to keep selling the same product over and over again indefinitely especially since others have caught up and they basically now are always a step behind it's likely a well dug in big player will reap the benefits when that card house comes crashing down.

I think Nokia is a lot more resilient then many give em credit. They are making strategic (and IMO wise) moves to be able to position themselves. At this point Nokia has a firm grip on the 2nd gen WP market and will obviously want to stay ahead. They have the quality phones they have the technology and the smooth OS, now they are moving into the mass market with their low end phones is what I think.

On a worldly scale the US market is a bonus, but far from the main catch and Nokia is well positioned to hook the big fish in that respect.

paulheu said,
Well since Apple will not be able to keep selling the same product over and over again indefinitely especially since others have caught up and they basically now are always a step behind it's likely a well dug in big player will reap the benefits when that card house comes crashing down.

I think Nokia is a lot more resilient then many give em credit. They are making strategic (and IMO wise) moves to be able to position themselves. At this point Nokia has a firm grip on the 2nd gen WP market and will obviously want to stay ahead. They have the quality phones they have the technology and the smooth OS, now they are moving into the mass market with their low end phones is what I think.

On a worldly scale the US market is a bonus, but far from the main catch and Nokia is well positioned to hook the big fish in that respect.

Wow thats excellent PR speech you should apply for a job at Nokia.

Symbian is a burning platform and Nokia is a burning company. They better hope Lumia phones are a massive hit soon or it's RIP.

smoledman said,
Symbian is a burning platform and Nokia is a burning company. They better hope Lumia phones are a massive hit soon or it's RIP.

Windows phone managed jumped from 1% to 2.4% of the browser marketshare in Finland since the Lumia launched there.

Carriers all over europe are reporting the Lumia devices selling out.

We'll see if the Americas have lumia love later this year.

dotf said,

Windows phone managed jumped from 1% to 2.4% of the browser marketshare in Finland since the Lumia launched there.

Carriers all over europe are reporting the Lumia devices selling out.

We'll see if the Americas have lumia love later this year.

Selling out doesn't automatically mean success, Nokia on purpose doesn't ship many because its prefered to have them sold out than loads of spare capacity sitting on shop, can't remember the source for this

thealexweb said,
....

more than doubling mobile browser marketshare in the three days that the Lumia line was available in Finland IS a sign of success.

dotf said,

more than doubling mobile browser marketshare in the three days that the Lumia line was available in Finland IS a sign of success.

Was that really in three days!! WOW impressive.

No doubt someone will claim the only reason for the huge increase in WinPho market share in Finland around the Lumia release is due to loyalty and Nokia being a "home brand/product".

I personally am a Nokia supporter and always having been. The main trouble Nokia has was Symbian, and managements insistance on sticking with it IN ITS CURRENT FORM (I dont mind them sticking with Symbian but it needed a major overhaul to get anywhere when up against Android & iOS). When I got my N8, as much as I loved it & Symbian^3, i did consider betraying Nokia and switching to HTC (Android/WinPho) next, but now that they've got WinPho (which I likedwhen first released, long before Nokia joined up), and having played with a Lumia in a CPW store, I will stick to Nokia.

Surprised they lasted this long. I guess the profit margin was too good to pass up. I imagine the places listed were nicer than something like Foxconn. I think it's time for Fair Trade electronics or everything. Unlikely but some of these places sound horrible and nobody seems to care that much.

ObiWanToby said,
Yay shift more manufacturing to Asia. It really does seem impossible to produce anything anywhere else.

Soon, nobody but the people in China will have jobs, but by that time, nobody will have money to buy anything, even if it's cheap....

ObiWanToby said,
Yay shift more manufacturing to Asia. It really does seem impossible to produce anything anywhere else.

Related:

http://www.nytimes.com/2012/01...e-class.html?pagewanted=all

If these products were made in USA or UK they'd fall apart within a week. I'm from the UK and I can guarantee that people over here would do a rubbish job at putting them together. Kids here can barely read, write or even get out of bed never mind produce X amount of IPhones in a day. Plus they'd all get stolen.