Nokia lays off 3,500 employees

The company plans to close a factory in Romania and some operations in Germany and the U.S.

Nokia is planning to lay off an additional 3,500 employees, as the company continues to restructure after announcing its decision to focus on Microsoft's Windows Phone operating system.

The affected employees work in manufacturing, location and commerce, and supporting functions, Nokia said on Thursday.

In manufacturing, Nokia plans to close its factory in Cluj, Romania by the end of 2011, as the company's Asian factories provide greater scale and proximity benefits, according to Nokia. The company is also reviewing how to best take advantage of manufacturing operations in Salo, Finland, Komarom, Hungary, and Reynosa, Mexico. The planned changes will impact on the number of personnel in 2012, it said.

Nokia is also consolidating its location assets including NAVTEQ and Nokia's social location services operations. Going forward, Nokia will concentrate its development efforts in Berlin, Boston, Chicago and other supporting sites, while closing its operations in Bonn, Germany and Malvern, US.

The changes are painful, yet necessary, and will turn Nokia into a "more dynamic, nimble and efficient challenger," CEO Stephen Elop said in a statement.

The closure of the Cluj factory and related adjustments to the supply chain is estimated to impact about 2,200 employees. The changes in the location and commerce business are estimated to affect approximately 1,300 employees, according to Nokia.

The layoffs are in addition to the measures Nokia announced earlier this year. In April, Nokia said it will outsource Symbian activities to Accenture, transferring 2,800 employees to the company in the process, and cutting about 4,000 jobs.

Nokia is currently in a tough spot because sales of its existing Symbian-based smartphones have dropped faster than expected, and large volumes of Windows Phone-based devices aren't scheduled to arrive until next year.

Send news tips and comments to mikael_ricknas@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesconsumer electronicslayoffssmartphonesNokiaMobile OSesmobileWindows Phone

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?