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Nokia announces a plan to cut 4,000 jobs at three factories. [CFP]
Finland-headquartered mobile phone maker Nokia announced yesterday that it plans to axe 4,000 jobs at three smartphone factories, or 8 percent of its global workforce, as part of an evaluation of its smartphone operation and performance and efforts to improve its global competitiveness.
The three factories are in Komarom, Hungary, Reynosa, Mexico and Salo, Finland. China will not be affected by the layoffs.
Analysts said the move is a crucial step towards Nokia's target to reduce costs by 100 million euros by the end of 2012.
Due to its staff reduction measures, Nokia will move production of its smartphones to Asia. The staff reduction will also affect some of the company's parts suppliers in Europe.
Sales of Nokia smartphones plunged 23 percent to 773,000 sets last year. In its fourth-quarter report Nokia said that it has sold more than 1 million of its latest Lumia Windows Phones to date.
China's business press carried the story above on Thursday.