LONDON Nokia is continuing to reduce its headcount as it responds to lower market forecasts for mobile phones, and will cut a further 450 jobs in production, sales and marketing as well as "sharpen its focus on fewer but stronger research areas", which will see headcount at its Research Centre fall by 130.
The restructuring is the second announced by the Finnish company over the past 12 months, which in January said it planned a major reorganization and earlier this year closed its Bochum site in Germany. Production of mobile handsets has shifted to Romania, where labor costs are lower. The closure led to 2,300 job losses in Germany.
Nokia also said Tuesday (Nov. 4) it would close its Turku site in Finland and relocate the administrative and production activities from there, predominantly to Salo and the Helsinki area. Currently, about 220 people work at the Turku facility.
In all, about 200 of the total jobs effected are likely to go in Finland, 100 of them at the Nokia Research Centre. The cuts are expected to be implemented by early next year, and the Turku plant is expected to be closed by the end of January 2009.
"Our aim is to find alternative work within Nokia for as many employees as possible," said Juha Äkräs, Senior Vice President, Human Resources, Nokia.
The company said it has started consultations where required with the groups that are impacted by the restructuring.
German plant closure prompts calls for Nokia boycott
Nokia's naked ambition; to move beyond cellphones
Commentary: Nokia (slightly) down but not out