EMCC European Monitoring Centre on Change

Nokia

Company/Organisation:
Nokia

Geographic Location

Country: Hungary
Region: Gyor-Moson-Sopron; Nyugat-Dunantul; Dunantul
Location of affected unit(s): Komárom

Company

Sector: Manufacturing
Manufacture of computer, electronic and optical products
26.3 - Manufacture of communication equipment
Number Employed: 4400
Group: Nokia

Employment Effects

Announcement Date: 08-02-2012
Planned Job Reductions min: 2300
Planned Job Reductions max: 2300
Type of Restructuring: Offshoring/Delocalisation
Employment Effect Start: 09-02-2012
Foreseen End Date: 31-12-2012
Direct Dismissals: 2300

Additional Information

Nokia, a Finnish mobile phone producer, has announced the dismissal of 2,300 employees at its Hungarian unit in Komárom following a review of its operations in the region. The dismissals are part of its global strategy: the Finnish company will dismiss 4000 employees in total from its units in Finland, Hungary and Mexico and outsource its production in Asia (see here)

The 2,300 reported dismissals are redundancies of employees directly employed by Nokia. However, the company employs a further 2,100 temporary agency workers in Komárom. Since the authorities are not required to be notified about the dismissal of temporary agency workers, there is no official information on how they will be affected.

Negotiations with the social partners have just started and the company assures that they will provide the affected employees with a support program including financial and reemployment support measures.

UPDATE 26.06.2012: The second wave of the dismissals have started. In March 2012, 1,200 employees have been made redundant, in June a further 900 jobs will be cut. There remaining 2,300 will be notified until the end of 2012.