Earlier this year, Nokia made a few changes in order to even out its
R&D operations in smart devices and mobile phones. Nokia announced
today that it wants to continue working to align its operations and
workforce by making reductions in manufacturing, the Location &
Commerce business, and “supporting functions.”
As a result, a manufacturing facility in Cluj, Romania will be closed by the end of 2011. Nokia said its Asian factories offer greater benefits as far as scale goes.
Manufacturing facilities in Komarom, Hungary, Salo, Finland and Reynosa, Mexico, which serve European and North American smartphone customers, will also experience job losses as their focus is shifted to sales package customization as well as customer/market software. These job losses are expected to affect 2,200 employees, but will not occur until the first quarter of 2012.
As far as the Location & Commerce business goes, Nokia will close facilities in Bonn, Germany and Malvern, U.S. It will keep facilities open in sites such as Berlin, Boston and Chicago. Nokia notes that it will use automation to replace these workers in an effort to increase effectiveness. This particular action is part of its consolidation of NAVTEQ and Nokia’s social location services operations, and is expected to affect 1,300 employees.
“We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger,” said Stephen Elop, President and CEO of Nokia. “We must take painful, yet necessary steps to align our workforce and operations with our path forward.”
The planned changes are expected to be complete by the end of 2012.
As a result, a manufacturing facility in Cluj, Romania will be closed by the end of 2011. Nokia said its Asian factories offer greater benefits as far as scale goes.
Manufacturing facilities in Komarom, Hungary, Salo, Finland and Reynosa, Mexico, which serve European and North American smartphone customers, will also experience job losses as their focus is shifted to sales package customization as well as customer/market software. These job losses are expected to affect 2,200 employees, but will not occur until the first quarter of 2012.
As far as the Location & Commerce business goes, Nokia will close facilities in Bonn, Germany and Malvern, U.S. It will keep facilities open in sites such as Berlin, Boston and Chicago. Nokia notes that it will use automation to replace these workers in an effort to increase effectiveness. This particular action is part of its consolidation of NAVTEQ and Nokia’s social location services operations, and is expected to affect 1,300 employees.
“We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger,” said Stephen Elop, President and CEO of Nokia. “We must take painful, yet necessary steps to align our workforce and operations with our path forward.”
The planned changes are expected to be complete by the end of 2012.
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