Nokia retools factory, cuts jobs to focus on smartphones

updated 07:45 am EST, Mon February 8, 2010

Nokia Salo plant loses 285 in smartphone focus


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.


By Electronista Staff

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Previous Comments

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    +3

    Target the sector that makes the most money

    It's about time Nokia started getting smart about focusing on the more lucrative sectors of devices. Selling those really cheap phones to third-world nations is probably a drag on their finances. Nokia's bragging about overall cellphone market share is doesn't mean very much. It's better they lose some market share and start making money on high-end phones.


  1. slapppy

    Fresh-Faced Recruit

    Joined: Mar 2008

    +1

    Focus?

    More like "cuts jobs to copy Apple" just like Microsoft. Apple hasn't cut any jobs because Apple can really innovate. Thats why their products sells.


  1. facebook_Nicolas

    Via Facebook

    Joined: Feb 2010

    0

    Android is the future

    Nokia needs to make Android phones now. They know it.


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