Nokia to cut 4000 jobs, shifts phone assembly to Asia
Shifting device assembly to Asia is targeted at improving the company’s time to market.
Finnish phone maker Nokia said that it will cut 4,000 jobs in Finland, Hungary and Mexico, and end the assembly of cell phones in Europe by year-end as it plans to shift production to Asia.
In April last year, the company had announced 7,000 job cuts, and another 3,500 job losses in September.
“Shifting device assembly to Asia is targeted at improving the company’s time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive,” said Niklas Savander, Nokia Executive Vice President, Markets.
Nokia said that it is committed to supporting their personnel and local communities during the transition.
Nokia was the leading handset manufacturer having a global market share of 40 percent till 2008. Currently, the overall market share is below 30 percent. Nokia smartphone shipments had dropped by about a third in the fourth quarter as compared to previous year.
To make up for this downslide, Nokia launched its first devices running the Windows Phone software after signing a deal with Microsoft in February.
According to research firm Ovum, “having replaced its own Symbian platform with Microsoft’s, is essentially a restart for the handset manufacturer, which has struggled to adjust to the new dynamics of the smartphone market following the launch of the iPhone in 2007.”
Nokia also announced at the Consumer Electronics Show a new device, the Lumia 900, which will be the first LTE-capable device to run on the Windows Phone operating system.
A recent report from International Data Corporation (IDC) revealed that Nokia shipped 113.5 million mobile phones in the final quarter of the year to claim nearly 27 percent of the market, followed by Samsung at 22.8 percent and Apple making it to the third place with 8.7 percent at the end of 2011.
- What’s Driving The Shift To Cryptocurrency Mining Malware?
- Computex 2018, Smart Asia Trade Expo To Focus On AI, IoT
- Artificial Intelligence In Cybersecurity: A Paradigm Shift
- Altaf Halde Steps Down; Kaspersky Lab Appoints New GM
- Facebook India MD Umang Bedi Resigns
- Is Artificial Intelligence A Job Killer Or Creator?
- Why Flipkart, Amazon Are Wooing India's Refurbished Phone Market
- How Artificial Intelligence Is Transforming Recruitment
- Reliance Disruption: Jio Launches A Zero Priced Feature Phone
- Indian Mobile Data May Cost Rs 50/GB By 2020: Report