Nokia cuts 4000 jobs in Europe and Mexico. Transfer assembly plants from Europe to Asia
8 February 2012 by Olav Hellesø-Knutsen Nokia today announced that the current device assembly done at two factories in Europe and in Mecixo in the future will be done in Asia closer to its suppliers
Nokia today announced the plans for moving its device assembly from Finland, Mexico and Hungary to Asia. The move will affect 4000 employees in total. The three factories will still be operated by Nokia, but they will now focus on smartphone product customization for European and American customers. The transfer of device assembly lines to Asia is partly done because of the close location to the component supply sources. There is no doubt that personnel cost is cheaper in Asia than northern Europe so the cost reduction are expected to be noticeable. Nokia says that the shift of device assembly to Asia is targeted at improving its time to market. Innovations will be introduced into the market more quickly and the company will be more competitive said Niklas Savander, Nokia executive vice president, Markets The 4000 jobs are history by the end of 2012. Alternatively post this in the Esato forum Please sign in to your Esato account to leave a comment regarding this article  Bonovox12 years, 9 months agoThat's just typical isn't it?? All manufacturers give a toss about these days is money over peoples jobs and lively hoods. Everything is China it's becoming a joke. They'll be no industry left in Europe one day.
so do I understand that you think that Nokia should go on using 3 factories across the world, maintaining a high green impact and expense with transport, continuing to make huge losses just so they can provide employment?
In fact, this 4000 is a small(ish) addition to the 20,000+ job losses already announced by Nokia recently as it tries to get back into profitability Yes masseur but it's always the job cuts here in Europe and China or Asia gains from our losses all the time.
I guess if European workers were prepared to work for less then things might be different, but they aren't and this is the economic outcome. Its not just manufacturing either, outsourcing of IT skills to India has been going on for 10 years or more and that has directly affected my industry, unfortunately. Also call centres etc etc. If a company can get the same job done for half or quarter the cost it makes sense to do so.
If only we'd learn. I just remembered my friend in Hungary her husbands mom works at the Nokia factory there.
On 2012-02-08 11:30:00, Bonovox wrote: That's just typical isn't it?? All manufacturers give a toss about these days is money over peoples jobs and lively hoods. Everything is China it's becoming a joke. They'll be no industry left in Europe one day. Its always been like that, the whole point of going into business is making a profit while satisfying a need, unless you're an NGO. Labour is much cheaper in China, and in their current state Nokia dont realy have a choice, would you rather them carry on making a loss, go bankrupt and then have to lay off everyone or rather lay off 4000? I know labour in China is much cheaper.
One day only High End phones and other gadgets will be made in europe for example Vertu which belongs to Nokia btw and are 100% made in England. They sold Vertu too! They said on the news that Nokia is doing this in order to get their phones quicker to market 
Huh  how they work that one out??
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