Nokia to cut 3,500 jobs, close Romanian plant

Nokia to cut 3,500 jobs, close Romanian plant

2011-09-29 21:05:40 GMT+7 (ICT)

ESPOO, FINLAND (BNO NEWS) -- Nokia, the world's largest manufacturer of mobile phones, on Thursday said it will close its factory in Romania and cut up to 3,500 jobs at various locations.

Nokia said it is taking the steps to move its operations closer to suppliers and key markets. As a result, the company's manufacturing facility in Cluj, Romania is to close soon as Nokia's high-volume factories in Asia provide greater scale and proximity benefits.

"We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger," said Stephen Elop, Nokia President and CEO. "We must take painful, yet necessary, steps to align our workforce and operations with our path forward."

The planned closure of the Cluj factory combined with adjustments to supply chain operations is estimated to impact approximately 2,200 employees, the company said. The plant is expected to close before the end of the year.

In addition, Nokia said it plans to concentrate its Location & Commerce development efforts in Berlin, Boston, Chicago and other supporting sites. Therefore, the phone manufacturer plans to close its operations in Bonn, Germany and Melvern, Pennsylvania, resulting in another 1,300 job cuts.

Earlier this year, in late April, Nokia announced a workforce reduction of about 4,000 employees, most of them in Denmark, Finland and the United Kingdom, to reduce operating expenses. The company also announced that around 3,000 employees in China, Finland, India, the United Kingdom and the United States would be transferred to outsourcing company Accenture.

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