Another 3,500 jobs to go, with Nokia’s manufacturing plant in Cluj, Romania as well as offices in the US and Germany due to shut
Nokia today (September 29) announced it will lay off approximately 3,500 employees globally as it attempts to align its workforce and operations and curb profit losses. It follows the manufacturer’s decision to cut 7,000 global jobs earlier this year.
The Finnish manufacturer said the majority of job losses would come from the closure of its manufacturing facility in Cluj, Romania which will see 2,200 jobs cut at the end of the year.
A further 1,300 jobs will go, due to planned changes in its Location and Commerce business as it shuts down offices in Bonn in Germany and Malvern in the US.
The announcements come after Nokia announced changes in April which it said would be primarily focused on aligning its research and development operations in smart device sand mobile phones.
“We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger,” Nokia President and CEO Stephen Elop (pictured) said.
“We must take painful, yet necessary, steps to align our workforce and operations with our path forward.”
Elop said Nokia’s “high-volume” Asian factories now provided greater scale and proximity benefits than other global sites, warning other sites in Finland, Hungary and Mexico were under review.
He said the Location and Commerce part of the business will now be concentrated in Berlin, Germany and Boston and Chicago in the US.
Nokia’s profits have taken a hit in recent years and it posted a net loss of £323 million in the quarter ending June 30 this year. It also revealed global net sales had fallen by 7 per cent in the same period to £8.1 billion.