Nokia to cut 4,000 jobs as manufacturing moves to Asia

Struggling handset giant Nokia has announced that it will cut 4,000 jobs in Hungary, Mexico and Finland, as it looks to move device manufacturing to Asia.

The measures are part of the Finnish firm’s moves to overhaul its smartphone manufacturing operations, which it announced last September, as it aims to step up its efforts in the increasingly competitive global mobile device market.

As a result, the number of steps in manufacturing and the amount of work carried out at the three factories is expected to decrease substantially. They will focus on smartphone product customisation, serving customers mainly in Europe and the Americas, with assembly to be transferred to the company’s Asian factories, where the majority of component suppliers are based.

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

He added that by shifting device assembly to Asia Nokia hopes to improve its time to market and ultimately be more competitive.

“We recognise the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition,” he added.

The job cuts are planned to be phased through the end of 2012, and Nokia said that it will offer a comprehensive locally-tailored support program, including financial support and assistance with local re-employment.