EMCC European Monitoring Centre on Change

Nokia

Company/Organisation:
Nokia

Geographic Location

Country: World
Location of affected unit(s): Salo, Finland; Komarom, Hungary; Reynosa, Mexico

Company

Sector: Manufacturing
Manufacture of computer, electronic and optical products
26.3 - Manufacture of communication equipment
Number Employed: 130000

Employment Effects

Announcement Date: 08-02-2012
Planned Job Reductions min: 4000
Planned Job Reductions max: 4000
Type of Restructuring: Offshoring/Delocalisation
Employment Effect Start: 08-02-2012
Foreseen End Date: 31-12-2012

Additional Information

Finnish communications company Nokia Corporation will end phone assembly in Europe, affecting 4,000 jobs in Hungary, Finland and also in Mexico.

Nokia will transfer its mobile phone assembly operations from Europe to Asia by the end of 2012. The three plants affected are in Salo, Finland; Komarom, Hungary; and Reynosa, Mexico. The plants will not be shut down, but will focus instead on smart phone product customisation for the European and American markets.

Relocating phone assembly to Asia is expected to reduce costs and to enable Nokia to reach markets faster: many components suppliers are based in Asia and the customer base in the continent is growing. Similar offshoring is reported to have occurred in competitor companies such as Samsung, Motorola and Sony Ericsson.

The cuts are additional to around 10,000 layoffs announced by Nokia last year, in April and in September 2011. The firm says that it will provide locally-tailored support programmes that will include financial support and help for employees to find new jobs.