Nokia Corp. said Wednesday it will end the assembly of cellphones in Europe by year-end as it shifts production to Asia in its latest attempt to cushion its finances from stiff competition in the smartphone sector.
The Finnish company said it plans to complete 4,000 job cuts at three plants in Finland, Mexico and Hungary this year as it reorganizes its global manufacturing operations to compete better with the likes of Apple Inc.’s iPhone and handsets using Google Inc.’s Android operating software.
The job cuts come on top of nearly 10,000 layoffs announced last year.
Nokia said it had increasingly shifted cellphone assembly from Europe to Asia where the majority of component suppliers are based to help it reach markets faster.
But the company said it would not close the three factories in Finland, Hungary and Mexico.
“There will no assembling of mobile phones at our plants in Europe after this,” Nokia spokesman James Etheridge said. “We plan to focus product assembly at our plants in Asia where the majority of our suppliers are based, while our facilities in Salo, Komarom and Reynosa will focus on the software-heavy aspects of the production process.”
Nokia said the shift to Asia would enable it to introduce innovations into the market more quickly and “ultimately be more competitive.”
Read More/Source: Yahoo