Nokia today said it would completely change the role of a key plant in Salo, Finland to boost its position in the smartphone arena. The factor will be entirely focused on building "high-value smartphones," with Europe as the priority. Nokia expects the changes to result not just in a better mix of hardware but a quicker turnaround in making the smartphones themselves.
As a consequence of the switch to "highly specialized manufacturing methods," however, Nokia expects to cut 285 jobs, or about 13 percent of the 2,200 workers at Salo. The company hopes to move some of these to other positions elsewhere and adds that the cuts should help stop the temporary, rotating layoffs that have been ongoing in the wake of the economic crisis; Nokia expects full-scale use by June.
The priority swap brings Nokia’s total job cuts in recent months to about 2,600 follow 2,300 previous losses and suggests the company is making increasingly more concerted efforts to combat its sliding market share in smartphones. Much of the decline has been in Europe, where the iPhone has made deep inroads in France and the UK while also drawing significant attention in other countries. Android and BlackBerry have also made minor incursions into Nokia’s once-secure lead.
