Nokia has cut more jobs from its manufacturing division, with the subsequent closure of the company's plant in Salo, Finland. The shutting down of the Salo factory also represents the final door being locked on Nokia's manufacturing presence in Europe - the Windows Phone OEM now makes use of locations outside the EU.
With the 850 jobs cut and transfer of manufacturing processes, the company expects to keep up-to-date with the constant altering market to produce hardware more efficiently, while at a cheaper cost to the bank book. Nokia plans to attack with a Lumia 510, another low-end Windows Phone that will target developing markets.
The Salo factory, which was announced to be closing earlier in the year, will be in the hands of pharmaceutical drugmaker Orion - perhaps they'll release a Windows Phone app as part of the deal?
Nokia has continued to slash jobs within the company as it attempts to lighten operating costs while maintaining high levels of quality and innovation, which are required to compete with the likes of Apple and Samsung.
via: GSM Insider; thanks, LiuXiang, for the heads up!
Reader comments
Nokia sells factory at Salo after closure to drugmaker Orion
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Great written article Richard Edmond
I wish they keep some phones manufactured in Finland. That's one factor that made them "COOL" in the 90's and early 2000s.
Made in China phones were scoffed at back then here in the Philippines.
Unlike Apple, Nokia still has it's own factories and doesn't just order it's products from some other company.
Sad, but it's the way of the modern technological world. At least it works for the balance sheet, sold quickly, and cheap labour for the future.
Where do you guys think the iPhone 5, lauded for its build quality is built?
Exactly.
where its manufactured is one thing who decides the materials to manufacture with is another thing entirely
Wow... Elop elop.. Its going to look like msft will be owning this company sooner than we all think.. I truly believe that Nokia will be part of msft,they made the surface tablet and Nokia making the surface phone...ita possible keep Nokia brand alive keep all the intellectual property let them make Nokia phones at the same time make your own phone...right
The age of the indestructible Nokia phone is coming to an end.
Not true. The phone hasn't changed. Just where it is made.
The iPhone is made in china.
What does this mean in terms of build quality if the plants all move to asia? Will there be at least a 5 year waranty. Do we accept the low cost high gain labor pricing? After all resources are getting lower, so time has come to enjoy your smartphone for the next 5-10 years. A 6 month to 2 year turnover for a smartphone is a resource nightmare. Less phones being recycled. More africans getting metal pollutants, more mountains being torn down. Just some things coming to mind. I have no issue with european build. For europe it could save fuel costs.
That long warranty won't matter because people will rarely want to hold on to a phone more than 2 or 3 years. They'll want new and shiny.
Build quality should not change. Nokia still dictates materials, specs, fit and finish, and are liable for product quality control. The only savings is in the labor costs. Nothing else should change.
Plus it's probably going to be a whole hell of a lot cheaper to build the phones in the country you're trying to really push your product. China is a HUGE market.
The iPhone is made in china. Save millions using cheap labor. Nokia has to do the same in order to survive. There are thousands of other developed country companies that outsource to Asia and other 3rd world countries for cheap labor. Can't hate Nokia here. Its all about survival and competition.
That's one of the reasons, I did not buy Apple ever! I hope Nokia is more ethical in developing countries than Apple was!
Poor finnish people.
I hope Nokia opens a new factory or something there when they are back at the top.
It'll never happen. Those manufacturing jobs will stay outside Finland.
Last thing Finish people are is poor. One of the richest countries in the world.
Tell that to the people that just lost their jobs. Decent paying manufacturing jobs for the middle class have been disappearing for years. Most likely they will not find as good a job as at Nokia.
And the CEO's continue to get richer..
Well, it is fine. I understand. But they do have factories in Korea, China, India, Germany, and Argentina. :-)
They closed down the factory in Germany years ago. Big uproar back then. Also, last time I checked, Germany is located in Europe ;-)
Not on the App-map... ;-)
Nokia has factory in Hungary. I believe Hungary is part of EU
I believe Brazil as well.
I wish we could see a OEM make a PHONE together like Samsung$$ for high spec + Nokia Awesome Design and Features call it the NoSun lol
http://www.youtube.com/watch?v=s-hXrGYxjTg&feature=BFa&list=UUBF-AuBxb8b...
GUESS, u haven't heard of the Samsung & Nokia iNTRO
Does this mean Asia will have the biggest hole in their Ozone while we sit here and enjoy superior quality handsets and premium services while they play with Lumia 510? Such a shame really. Excited about increase in share prices though! ;)
That's the reality of the world... But everyone is happy if they can benefit from it personally. I'm not different
It's not "their Ozone", there's just one planet.
Actually, there are many planets. ;)
Yes there are many planets! ;)
We do know that thinnest parts of Ozone are harming what's underneath straight away right? Of course globally we are affected at some point.
Shame somehow ...
Are there any electronical devices left that are NOT produced in Asia?
In Norway it is...
Even exporting to Japan...
:-)
In an ironic move, Lenovo will be manufacturing in the USA soon.
That share price goes up!!!
I'll never understand the stockmarket ...
The consensus on wall street is, if you're gonna be a global distributed hardware. You need to have it manufactured in asia where the costs are cheap and production is the best in terms of scalability.
Since Nokia ditched that plant and is going elsewhere for production, investors see that as a good thing. Losing employees is bad for perception but it'll be better in the long run. At least, that's my opinion on why it happened.
+1
I guess you're right, I just hope those people will find something else.
I'm a bit sensitive to cost cuts ... I've heard recently that in the IT department of my company, 1 Billion CHF have to be saved till 2014, propably quite a few employees will lose their jobd and parts of the IT will be moved to Poland. Ridiculous measures to save costs are already taking place, and I always have to smile sadly when I hear that there are still companies where you get smartphones. Forget about that in my company, people who need headsets for their work (for example those working for the hotline) even have to buy the headsets themselves. Can't speak for Nokia since I'm not working for them, but in my company - which isn't in the red btw - it's not only necessity, but also a lot of greed that leads to such weird desicions.
Lets hope Mr. Elop doesn't resemble my CEO and cares for the company (and its future). After all, I want to buy a Lumia 2000 in one and a half years :-)
Lived and worked in Switzerland for 5 years. Loved the lifestyle and the mountains, even had our first kid there. After the fall of the Berlin Wall, we always wondered whether some of our jobs would end up in Eastern Europe with it's lower cost structure. I guess it's finally happening, sad to hear it.
Lived and worked in Switzerland for 5 years. Loved the lifestyle and the mountains, even had our first child there. After the fall of the Berlin Wall, we always wondered whether some of our jobs would end up in Eastern Europe with its lower cost structure. Looks like it's happening, sad to hear it.
And now the Nokia phones will be made right beside the Samsung and HTC phones
Really doubt that. I recall Nokia moved their manufacturing to South Korea from China a few months ago. Probably could be the same plant as Samsung, assuming that they manufacture their phones there aside from China.