Nokia’s American CEO Repeats U.S. Receipt: Offshore Everything to Asia
The CEO of Nokia, former Microsoft executive Stephen Elop is continuing with his grand restructuring plan, bringing the next wave of cuts to the manufacturing division in Finland, Hungary and Romania.
Following is arrival in Nokia, Stephen Elop has created a lot of controversial movements, introducing instability in the ecosystem which was under attack from Apple and Google anyways. Needless to say, memos such as his infamous "Burning Platforms" damaged confidence in Nokia's ability to execute.
At the end of 2011, the company that created the smartphone dropped to third spot on the list, and recorded bigger losses than complete Google revenue. But the moves aren't stopping anytime yet. After Compal received the contract to manufacture Lumia series of smartphones (710 and 800), it was clear that the jobs in the West will come under siege.
Today, the company has announced that 4000 Nokia employees at three manufacturing locations in Europe and North America will be terminated, equipment sold and the only thing factories in Komarom (Hungary), Reynosa (Mexico) and Salo (Finland) will be doing is "smartphone product customization."
In any case, this news is really good for Compal, which can expect even more work in its Far Eastern facilities.