Nokia to layoff 4,000 employees in Mexico, Hungary and Finland

It has been revealed that Nokia has suffered a major 1.4 billion dollar loss in its third quarter sales of 2011. The loss has made the company officials decide that they would lay off 4000 employees in three countries, Mexico, Hungary and Finland.

Layoffs procedure is expected to get complete by the end of 2012. However, it is not the first time that Nokia has announced layoffs. Since 2010, it has been laying off their employees which have raised concerns among the governments where Nokia plants have been situated.

In addition, it has also been unveiled that Nokia has been trying to shift its manufacturing base to China and other Asian countries. The company has said to have witnessed 21% decline in the sales in 2011. Resultant of which, the company has taken the decision to lay off its 4000 employees.

The company has clarified that their units at the affected places would remain active but would only cater to those customers who would demand their services. Nokia’s Spokesperson James Etheridge said that they are trying to reduce the manpower to cover up the loss. As a part of it, they would be moving their production units to Beijing and Masan, South Korea and China.

It was not a big surprise for industry insiders, who told that more than a choice, it was a decision taken under compulsion. Mikko Ervasti, who is a Helsinki-based analyst at Evli Bank, said, “This is part of the actions Nokia has to take to reach the cost savings target of 1 billion euros by the end of 2013”.

The count must have reached to 14,500 job cuts when one adds up the layoff count which was being announced by Chief Executive Officer Stephen Elop at the time when they united hands with Microsoft Corp.

Source: Top News