Skip to main content

Microsoft to cut 9,000 jobs with Nokia plant closures in China

Microsoft will apparently transfer some of the equipment from the plants to Vietnam, according to MarketWatch:

Microsoft, which bought Nokia's handset business last April, scheduled the closure of the plants -- located in Beijing and the southeastern city of Dongguan -- earlier this month and plans to ship some of the manufacturing equipment there to Vietnam, according to a report in the government-run Beijing Youth Daily.

The 9,000 jobs being cut will be part of the 18,000 jobs that Microsoft announced plans to cut in July 2014 following their acquisition of the Nokia Devices and Services division.

Source: MarketWatch

87 Comments
  • Hope they find jobs soon.
  • Unfortunately that's how business works. There was not point for MS to have such huge factories in China (Beijing,Dongguan) and India (Chennai) - so they closed all threee of them. Like Apple and others - MS can easily use contract manufacturers like FoxConn who do an awesome job. MS can concentrate on design and quality of devices now - hope they improve the high end ones and bring it on par or better than the Surface. There is huge scope of improvement - especially on high end ones.
  • True, but for correction, the Chennai plant was never sold to Microsoft. Its not part of the Nokia-Microsoft deal. It's decision for operation/sale/closure is still pending in an Indian Court of Justice due to some tax issues. So, microsoft never shut it down, because it wasn't even in their hand to do so. The decision for the plant is still lying in the hands of Court, the Government of Tamil Nadu & the Government of India.
  • Chennai factory has been closed for months. It will be sold by Nokia and made operational again (not to Microsoft Mobile) if and when corrupted Indian officials come to their senses. Time is running out though as machinery gets older day by day. Modi seems to be India's Obama, huge disappointment after all 'change' and 'make in India' promises.
  • People like you are ridiculous and take every opportunity you can to slander Obama. Jobs are at there highest point in years, people who couldn't afford health care before now have it, and Hispanics who are willing to register legally, pay taxes, and get a good background check will have the opportunity to work and make positive contributions to the American economy instead of coming into the country and having hard working American like me and you I'm sure foot the bill while corrupt business owner pay them under the table. Have you seen the new recently, WalMart, TJ Max, and Ross are all raising their minimum wage employees salaries up to $9 which is better than $6.50 - $7.50 they made previously which is a direct result of Obama calling for an increase to minimum wage. While he's definitely not perfect, no other president has been either. You can ignore fact if you'd like, you can't change the facts pointed out above!
  • Just so you know, at least on the healthcare front it is more expensive than it has ever been before. Now my family can barely even afford healthcare while before it wasn't an issue. Plus, we just had issue after issue when trying to go through the government website and this was after they had "fixed" it. Plus, WalMart raising wages has nothing to do with Obama. Minimum wage has not changed any, it was just WalMart's decision to do so. Like any business, they can decide what to pay their employees without the intervention of the government. Most people don't seem to realize this but the president does not really have all the much power. Yes, they can poke and prod people into doing things for them, but in the end they don't really have that much control. 
  • As stated, no president is perfect and if you truly believe what you said about presidents not having that much power, why did you straight up blame him I your opening statement? I have a questions for you: Did the president design the healthcare website? Do you think every idea that went into the creation of the healthcare was Obama's ideas or a group of politicians/cabinate members? Did you and your family have to sign up through the healthcare site? I don't think so, me and my family didn't, we stayed with what we have and you had that same choice. If your employer dropped your coverage because you explored your options then their butts. I generally don't go into politics, but you opened the door by bringing it up on a tech site which the article had nothing to do with our president. Maybe Apple had some input on his decision's because he clearly prefers them over Microsoft as reflected by his many meetings and invites to them to the white house. Again, no president has been perfect or made decision without facing resistance or having to make adjustments.
  • In USA healthcare is more expensive to you than in European countries where you can get it even for free. You end up paying much more because you have more entities, like insurance companies, involved. Not to mention all side effects it causes like sick leaves, long term sickness, and so on, and costs of those to the society. Obama tried to fix this but he failed because of idiots who doesnt know how to do math, like most of the voters.
  • @Skylar Headrick: Technically what you said is true, but it is very misleading.  Yes, health care costs are more expensive than ever in the US, but that has been the case every year for the past 35+ years.  Inflation alone would cause that to be the case even if nothing else changed.  You could say the same thing about almost anything. What you fail to mention (perhaps you don't know) is that total US health care costs per capita have been trending level for the past 4 years now when adjusted for inflation.  This is interesting because for the past few decades health care spending has significantly outpaced inflation rates.  Now, for the first time in a long time it is starting to align with inflation.  The year over year percentage increases in health care costs are at the lowest we have seen in decades.
  • All I know is that following the new healthcare plan the cost of it has gone up considerably since before that point.
  • As is usual, OMG55, you are delusional. Can't change facts pointed out above?  Okay, then let's add the missing facts. FACT: Hispanics who are willing to register legally (funny word used in this context), pay taxes, etc? You mean people who entered this country illegally and are taking jobs away from citizens who actually have a right to be here. Yeah, this is power the president himself stated 22 times that it would be illegal and unconstitutional for him to intervene, yet...  FACT: Jobs at highest point in years? No, only the unemployment benefits that are being claimed and distributed are at the lowest point in years. Labor participation by the public is at the lowest point since the great depression. Get a clue. That's because so many people have been out of work for so long that they can no longer qualify to continually get paid unemployment, so the government, under Obama's direction, has ceased to count them.  FACT: People who couldn't healthcare now have it. Ha! I lost my healthcare because of him, and haven't been able to afford to replace it because of much, much higher prices. People who aren't being put on Medicaid (free healthcare) are paying through the nose. Many people who thought they were getting it cheap because of subsidies are now finding out they have to repay those subsidies, because they didn't qualify after all.  FACT: Those employers didn't raise their wage to counter Obama calling for higher minimum wage, because they knew full well that Obama would never get it through the Congress. They raised it because they can now afford it, since they, for the most part, have stopped hiring full-time employees. When all you have are part-time employees, and you don't have to pay for health care, you can decide to pay people extra so they can buy healthcare off the exchanges. Stop drinking the koolaid. It's warped your brain. Funny how facts can get in the way if you look at all the facts instead of Dem talking points.
  • @rhapdog, Your version of the "facts" have some issues too.  All of what you posted is oversimplified, but nothing in your second point is even close to factual.  The process for measuring unemployment hasn't changed in decades.  Some of the metrics go back several decades.  Do some quick reading on how unemployment is measured (pay close attention to the definitions for the U1 - U6 metrics) and then come back here and explain your "facts" about people not being counted because Obama left them out.  Total BS.  Sorry, but it's you that is reciting talking points.  Where else would you have gotten this misinformation?  You might want to ask yourself why you are getting your information from sources that are clearly trying to make decent unemployment rates (currently in line with much of the 70's, 80's and 90's) seem like the "lowest point since the great depression." http://en.wikipedia.org/wiki/Unemployment#Measurement
  • um, you're stupid. (OMG55)
  • @Vhyr
    Modi seems to be India's George Bush. Drove this country off the cliff. Don't know how POTUS Obama managed to get it back on course. Modi is the prez., not the courts!
  • Speaking from New Zealand I proclaim Obama to be a twit, much stupider than Bush but covering it with that smug appearance of being educated.
  • True. Regrettably the ones having to do nothing with BS and greed on both sides of corporations and Government deals are always negatively affected. I hope them and their families bounce right back and have 3 meals per day and be able to afford the necessities so many of us take for granted. Evolution = compassion, understanding and support for one another, and not social status or anything else the ones in power define for humanity as true success and happiness. Cheers!
  • Isn't it ironic that about two years ago, the Nokia factory workers in China held a noisy demonstration, complete with placards and megaphones, that they were against Microsoft buying Nokia because they didn't want to work for Microsoft? Now their wish is coming true - they won't be working for Microsoft anymore. That should make them deliriously happy.
  • It's not ironic, this is precisely why they opposed the acquisition...
  • Agree they knew that MS will eventually close the factory and everyone will lose their job !!!
  • Nokia would have eventually closed the factory as well because their mobile business failing prior to them even manufacturing phones for microsoft or the sale of the D/S division. I carry Nokia phones personally and distribute the to my 200+ employees as I'm the IT manager, but I'm also realistic, something die hard Nokia fans refuse to accept. If Nokia is so great, can someone tell me why they weren't uber successful with any of their three cell phone OS'es or why the Android tablets they've made since departing themselves from Microsoft via the sale of the D/S division isn't catapulting to the front of the Android market??? That's what I thought....cant provide a legitimate reason other than the can't compete with Samsung in spite of the galaxy line not changing much and being made of what people are saying is cheap plastic
  • The Nokia N1 is so far ONLY available in China. And for your information, all the batches made available so far have been sold out in less than 5 minutes.
    The N1 isn't being mass produced yet, nor available in Nokia's strongholds (Europe and India). So perhaps you should keep your smartass judgements for when they are ;) Posted via the Windows Central App for Android
  • Guess they shouldn't have protested. Now Vietnam gets those jobs.
  • Guess no more free money from MS for the Chinese government.
  • They need to blame their government for banning windows 8 in China ; ) This is no laughing matter, but their govt being butts could have solidified Microsoft position on this. Karma is a B
  • Off topic
    6tag removed from store :-(
  • But I updated the app few minutes ago..
  • I think 6tag must have been removed because the latest update causes it to crash on opening. At least on my 1520.
  • Yes.
  • Go post that in the forums instead of here.
  • Oh.... That's no good.
  • Maybe it was all those leaked photos....
  • Ahahaha.. So long "sockers"! That's what they deserves for harassing these Company..
  • I think you mean "suckers"?
  • Yeah.. I intentionally mis-type that..
  • Umm, I don't think the employees were harassing the company, they WERE the company! Have a little compassion for those who are potentially going to be out of work.
  • Actually the small employees aren't so bad but the middle officials were main culprit for this type of collapse of such a good reputed company, our beloved NOKIA. I read that article somewhere.
  • Sockers?
  • Vietnam is cheaper than China.
  • They hace to cut because the anti trust sheet they bringed to us
  • Can you link.me to the article about that anti-trust sheet
  • They're tryin to steal the Source Code of "Windows".. When Microsoft said "NO", China sent them an Anti-Trust suit..
  • you are making stories...
  • No, he isn't. China is the antitrust lawsuit capital of the world these days. They are slamming MS with all kinds of shit just because MS refuses to play by their rules. I mean the least they could do is show MS some respect considering China has the largest share of pirated copies of Windows in the world. Disgusting attitude by their government TBH.
  • Not to mention China taking Qualcomm over the coals now. Hooray for the world's economy. Today the internet will die when the heavy handed regulations start. Net Neutrality a solution to a problem that never existed.
  • Uh no he is not it is funny since most Windows running in China are not genuine versions mostly all hacked. Soon MS will do a Google and tell China go steal,somebody else's IP.
  • It will hit Microsoft brand there.
  • In a 1.3b people country with a (relatively) booming economy, probably not much.
  • Not cool...
  • I have absolutely no problem with them shutting down business in the world's biggest despotism; too bad they're moving it to a smaller version...
  • I'm not entirely sure the USA should pass judgement on matters of "despotism" to anyone.
  • Amen
  • That despotism is financing your budget. If China goes down US follows immediately after...
  • More Companies to Come.. :D Let the People's Republic of China trash their Government.. :D
  • Sucks for the people, but serves China right.
  • bye bye China!
  • Around $150 million in savings?
  • China's aggressiveness towards foreign companies makes this all the more sweet. It would be more appreciated if other companies followed along.
  • China wants all foreign companies to share their IP. Well I mean give it to them since for them R&D means just stealing from another.
  • Any idea which cities the closures impact?
  • Err... "Microsoft, which bought Nokia's handset business last April, scheduled the closure of the plants -- located in Beijing and the southeastern city of Dongguan -"
  • Yeah, I was simultaneously poking fun at the article for mentioning this twice and morons that always ask questions in the comments that are clearly answered in the article.
  • Ah.. :) you got me.
  • Guess they don't need as many phone manufacturing plants anymore as MS keeps recycling the same old low end phone specs and giving us more and more confusing phone model naming. Is it me or was there a lot more WP progress and innovation being made before the Nokia acquisition? Just seems like everything has gone downhill ever since.
  • It is just you. If anything, MS has updated the low end phone specs since it took over. As always, most of what we have seen to date was of course in the pipeline even before the takeover.
  • Like 1GB of RAM instead of 512MB RAM.
  • The extra ram is being added to new Lumia phones only because Windows 10 needs it. 
  • Except it doesn't.  Windows 10 manages RAM better than even 8.1 does. There are a few performance exceptions, but the majority of the WP10 preview has been on 512mb devices and out performs 8.1 in most cases.  
  • Exactly! I just don't see the same progress. Before the takeover, Nokia was on a roll with the 920, 925, 1020, and 1520. Then we get a ton of budget phones. I get it, they're great for those markets but do we really need 50 different budget models? And then the Icon/930 comes but with a thick boxey design and no Glance or sd card while other phones before it had it. The only newer phone I've been impressed with since the 92x series is the 830 and it's removable back, battery, sd card, built in wireless charging, and Glance! Too bad it didn't have a better processor and more RAM or that could have been a real winner. And where is the marketing? Did MS give up? I remember all the cool low light "more than your eyes can see" and "Brave" commercials. Now there are none! Fail.
  • You do understand that all those phones were Nokia designed MS only took off the Nokia name. You can't design a phone in a month. Most phones have been designed a year or two ahead of time.
  • It's not you. But it's also not a surprise (or shouldn't be). Nokia was the one pulling WP. Microsoft has no plans to turn itself into a phone OEM. Nadella has made that clear over and over again. Microsoft is a software company and will remain a software company under him (thankfully). Sooner or later, Microsoft will close down Microsoft Mobile and any phones they may produce will follow under the same strategy as the Surface and the Microsoft Band: reference devices for other OEMs.
  • Well, I guess there's always the iPhone or BBM.
  • Well the "reference device" route is not an option as long as there are no other commited OEMs… And as Surface is turning a profit, I doubt they will stop making them…
  • Or the Xbox. And Hololens seems like another hardware play.
  • Reference devices serve precisely to incentive OEMs. You only started to see mass production of Windows tablets after Microsoft released the first Surface Pro.
    The same could theoretically happen to phones (though I doubt it). Also I didn't say they'd stop the Surface. But they won't be making tons of variations of it either. The Surface will keep being an expensive reference device and that's it. OEMs are then called to fill in the other segments of the market. Posted via the Windows Central App for Android
  • That's a lot of unemployment. (N)
  • That makes a lot of business sense. Vietnam is a lot more hospitable to Microsoft than China. Also, WP is more accepted in Vietnam than in China.
  • They don't sell their own organs there in the black market for a measly iPad.
  • Not good... They better be planning something huge..
  • Oh no!!!  That's a lot of unemployed children!!!
  • Denim updates for the remainder of the Asian CV Devices' just take might take a longer now.... Sure hope not... Owning a 1520 without this firmware update is kinda like having a High output 8 cylinder under the hood and only running on 6 of them...
  • Biggest mistake by Microsoft!! First they took the Nokia branding and now....!!! Hell
  • What exactly is the mistake? Cutting excess production capacity they no longer need and/or can source cheaper elsewhere?
  • Why I feel that Microsoft bought nokia only for .......
  • "Transfer some of the equipment". What will happen to the rest of the equipment.
  • Lets pray that all those unemployed people get jobs as soon as possible.
  • Sad story, I think globally Nokia also had to shut down their factories. That would make a total of 9000 in china, I believe 3000 in Finland and another 4000 jobs in Romania (I think). That's a total of 16000 jobs in less than 5 years.
  • In Romania the jobs were about the worst paid in that region. Maybe some suffered but for the most it made no difference. And in that place a new plant opened and employed the same people for the same shitty salaries :) Probably the same will happen in China.