SAN FRANCISCO-- Finnish phone maker Nokia has announced it will be cutting down on its manufacturing operations in Hungary, Mexico and Finland in order to move device assembly work to its Asian factories instead. Nokia said the move would cause approximately 4,000 workers to be laid off.
"Shifting device assembly to Asia is targeted at improving our time to market,” said Nokia in a statement. The company added that the transition would allow Nokia to work more closely with suppliers and enable it to “introduce innovations into the market more quickly and ultimately be more competitive.”
"We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition," said Niklas Savander, Nokia executive vice president of markets.
Nokia’s European factories are based in Komarom, Hungary and Salo, Finland, while its Mexican facility is in Reynosa. Savander said the factories would now shift to focus on smartphone product customization rather than assembly.
"With the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers,” said Savander.
Personnel reductions are planned to be phased through the end of 2012, with Nokia noting it will offer “a comprehensive locally-tailored support program, including financial support and assistance with local re-employment.”