Nokia Moving Smartphone Production to Asia Amid Re-Org
Nokia today announced that it is making changes to its production facilities located in Komarom, Hungary; Reynosa, Mexico; and Salo, Finland. Nokia has used these plants to manufacture smartphones, but will now push its manufacturing from these facilities to its Asian factories, which are closer to its component suppliers. The three facilities will remain open, but will focus on smartphone product customization, serving customers mainly in Europe and the Americas. As a result, Nokia intends to eliminate about 4,000 jobs between the three plants. Personnel reductions are planned to be phased through the end of 2012.
Microsoft to Close Nokia Finnish Phone Production Site
Microsoft today confirmed it plans to fully close a facility in Salo, Finland, that was formerly used to create and produce mobile phones. Microsoft will leave the Nokia facilities in Espoo and Tampere open, but plans to cut about 2,300 jobs in Finland in total.
Motorola's Chicago Office to Lose 500 Jobs
Motorola has revealed the depth of job cuts being made at its Chicago headquarters and they run quite deep. The firm will eliminate 500 positions, or about 25% of its staff, as its parent firm, Lenovo, restructures amidst weak sales.
Nokia Dishes More On Possible Phone Plans
Nokia CEO Rajeev Suri today reiterated that the company would like to return to the phone business, but said it is in no rush. Speaking at the Mobile World Congress trade show, Suri noted that Nokia will not manufacture its own handsets, but will instead license its brand to an outside manufacturer.
Nokia-Branded Phones to Make a Comeback
Nokia and Microsoft today put in motion a series of deals that will eventually lead to Nokia-branded handsets returning to the market. Microsoft has agreed to sell its feature phone business to FIH Mobile Limited, a subsidiary of Foxconn, for about $350 million.