Nokia has announced plans to align its operations and workforce in its manufacturing operations, Location & Commerce business and supporting functions. As the key markets, as well as the majority of suppliers for feature phones are today in Asia, Nokia plans to focus its feature phone manufacturing on its high volume Asian factories and to close its manufacturing facility in Cluj, Romania by the end of 2011.
The planned closure of the Cluj factory combined with adjustments to supply chain operations is estimated to impact approximately 2,200 employees. Nokia will seek to aid the impacted employees with a support program to help with re-employment locally.
Nokia is also reviewing the long-term role of its manufacturing operations in Salo, Finland; Komarom, Hungary; and Reynosa, Mexico. These factories are expected to continue to play an important role in serving Nokia’s smartphone customers, but the plan is to gradually shift their focus to customer and market-specific software and sales package customization. As this would mean changing the way the factories operate, Nokia expects this to impact the number of personnel in 2012, with no impact in 2011. Nokia expects to have more visibility into the possible headcount impacts in the first quarter of 2012.
Nokia also plans changes in its recently announced Location & Commerce business, which includes NAVTEQ and Nokia’s social location services operations. As part of consolidating this business, Nokia has identified potential synergies as well as opportunities to increase effectiveness through automation. Location & Commerce is responsible for driving the delivery of the world’s best digital mapping content, location platform and social-location experiences. Nokia plans to concentrate its Location & Commerce development efforts in Berlin, Boston, Chicago and other supporting sites, and plans to close its operations in Bonn, Germany and Malvern, US.
The planned changes in the Location & Commerce business are estimated to impact approximately 1,300 employees.
In April 2011 Nokia announced plans for an alignment of its workforce and site operations with its new strategy. This process now continues, with consultations starting with employees in Sales, Marketing and Corporate Functions.
“We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger,” said Stephen Elop, Nokia President and CEO. “We must take painful, yet necessary, steps to align our workforce and operations with our path forward.”
Nokia will offer employees affected by the planned reductions a comprehensive support program.
Please see the press release for additional information.
