The decision to cut jobs is the result of a review of Nokia's manufacturing operations, which the Finnish phone maker announced in September.
The three factories affected by the redundancies will instead focus on smartphone product customization for customers mostly in Europe and the Americas. Device assembly operations will be transferred to Nokia's factories in Asia, which is closer to the company's component suppliers.
The geographical breakdown of the 4,000 headcount reduction is as follows: 1,000 jobs will be cut from the factory in Salo, Finland; 2,300 in Komarom, Hungary; and 700 in Reynosa, Mexico.
Why this matters
Nokia's job losses are mounting. This new round of job cuts brings Nokia's total headcount reduction to 13,800 since Stephen Elop took over as CEO in September 2010. Taking into account the 17,000 job cuts Nokia Networks plans as part of its restructuring, Nokia's redundancy total is 30,800. (See Nokia Dumps CEO, Hires Elop, Nokia Unveils Major Revamp and NSN Unveils Its Kill List .)
At the end of the fourth quarter 2011, Nokia had a total of 130,000 employees, including NSN.
Here's a short history of Nokia's recent staff reductions:
- Nokia to Cut Jobs, Stay in Finland
- Nokia Cuts 4,000 Jobs, Sheds Symbian
- Nokia Cuts 3,500 More Jobs
- NSN to Cut 17,000 Staff
- NSN Could Lose More Than 17,000 Staff
- Euronews: Finns to Bear Brunt of NSN Cuts?
- NSN to Cut 2,900 Jobs in Germany
— Michelle Donegan, European Editor, Light Reading Mobile