nokialogo Nokia to cut 4,000 jobs and move assembly to Asia

Nokia is to axe an additional 4,000 jobs and move its assembly work to Asia in a bid to cut costs and return to its previous dominance in the mobile arena.

Nokia is to axe an additional 4,000 jobs and move its assembly work to Asia in a bid to cut costs and return to its previous dominance in the mobile arena.

 
The job cuts amount to eight percent of the Finnish company's workforce and brings the total of job losses to 30,000 since Stephen Elop became CEO in late 2010.
 
2,300 of the cuts will occur in Hungary, 1,000 will be chopped in Finland, and a final 700 will be lost in Mexico. Finland's employment unions were furious with the news and wanted large cash payments for staff that were given the boot.
 
Given the continuing poor situation within the company and its finances, these are unlikely the last job losses we will see.
 
nokiasalo Nokia to cut 4,000 jobs and move assembly to Asia
 
Nokia is also moving its assembly business to Asia, where other rivals like Apple have been established for years. It is not yet clear where it plans to set up shop, but a likely candidate is China, where there is a large workforce, many of which will already be familiar with mobile technology. The lower wages there could save Nokia millions, but it might also raise questions over working standards, the same accusations levelled at rival firms.
 
It's not hard to understand why Nokia is making these cuts, as the company recently reported a whopping €1 billion loss for the fourth quarter of last year, with earnings dropping by 73 percent.
 
Cutting costs is a necessary evil, but this alone is unlikely to stop the company from crumbling. It is hoping its deal with Microsoft to launch Windows Phone devices will put it back on top, or at least make it a viable contender to Apple and Google's many Android supporters.
 
Source: Reuters