Nokia is finally making good on claims of “substantial reductions in employment”, with an estimated 3500 employees being made redundant in factories in various countries as a result of across-the-board manufacturing cost cuts.
The company’s downsizing due to reduced handset sales has hit their massive manufacturing plant in Cluj, Romania, as Nokia intends to move phone production to cheaper Asian factories.
The Romanian plant as of today employs around 2,200 people, and combined with continued “consolidation” of Nokia’s production sector, a second facility in Malvern, US and Bonn, Germany have also taken a hit, terminating the employment of an additional 1,300 people.
Nokia’s troubles have recently stemmed from the fact that while it is selling more phones, the global profit the company makes from handsets is getting lower and lower, as well as the company’s services such as the Ovi store and Android-wannabe Symbian OS not faring well compared to similar ventures. Therefore, cutting manufacturing costs seems to be a right move for the company.
Additionally the Asian KIRF market has been targeting Nokia handsets for ages now, further dropping Nokia profits in more recent times. Knock-off electronic itemsare all the rage over there and even our favorite apps are not safe.
Nokia has also said that they are currently reviewing their operations at Salo in Finland, Komarom in Hungary and Reynosa in Mexico,
with an undeterminable number of manufacturing employees potentially under review for redundancy.
Nokia’s latest press release has outlined that the cuts are scheduled for the end of 2012 on top of the 4,000 job losses the company told us about back in April, bringing Nokia’s total cuts so far to 7500 people across the world.