On Thursday the company announced the cutting of 3,500 jobs at its device manufacturing plant in Cluj, Romania.
The move is somewhat controversial as the Romanian plant, opened in 2008, was the cheaper replacement for Nokia’s expensive German manufacturing operation in Bochum. Nokia was dragged over the coals in the Bochum debacle, which saw 2,300 workers axed from its plant.
The factory will be closed by year end, as Nokia chief Stephen Elop admitted that Nokia’s high-volume Asian factories provide greater scale and proximity benefits.
The company plans to concentrate its Location & Commerce development efforts in Berlin, Boston and Chicago, and plans to close its operations in Bonn, Germany and Malvern, US.
“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 Nokia CEO Stephen Elop. “We must take painful, yet necessary, steps to align our workforce and operations with our path forward.”
(C) Telecoms
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