In what comes as a startling revelation by Nokia, the company states that it will cut some 4,000 jobs in its smartphone production unit across Hungary, Mexico and Finland, as it prepares to move its smartphone production unit to Asia – its largest market. The Finnish giant, reportedly intends to cut costs that it incurs due to manufacturing, and in the process adapt their marketing strategy. While smartphone production business sets itself up in Asia, its oldest factories across Hungary, Mexico and Finland will make final adjustments to finished phones, confirms Bloomberg Businessweek. According to reports, in Asia, Nokia will move its smartphone production base to Beijing and Masan, South Korea. Nokia has been trying to make its presence felt in the smartphone market, and the battle has been an intense one, especially since there are makers like Apple Inc. in the market.
Trying to excel in the smartphone market
Close to a year ago, Chief Executive Officer, Stephen Elop had made the announcement of the decision to cut some 14,500 jobs across its workforce, public, a decision, which came after they joined hands with Microsoft to battle it out in the smartphone market. Now, with more 4,000 jobs to claim, it surely looks as if, Nokia's trying to concentrate its resources better to compete in the smartphone market.
According to reports, the job cuts, include 2,300 in Komarom, Hungary, 700 in Reynosa, Mexico, and 1,000 in Salo, Finland. The report further states that, “Salo was spared from the earlier rounds of job cuts and outsourcing deals, which affected engineers working on the Symbian smartphone software Nokia is phasing out in favor of Microsoft's Windows Phone. Nokia's smartphone sales declined 25 percent to 77.3 million units last year as customers shunned the Symbian line. Nokia introduced Lumia handsets running Windows Phone six weeks before the end of the year and said on Jan. 26 that it had sold “well over” 1 million of the devices “to date.”“