Nokia layoffs and factory closing

By , ITworld |  Data Center, layoffs, Nokia

Bad news follows bad news for Nokia, as they just announced another 3,500 layoffs after cutting 7,000 jobs back in April. And that new manufacturing plant in Cluj, Romania? History.

The factory closing accounts for about 2,200 of the layoffs, and 1.300 employees will lose their jobs as Nokia trims headcount in Bonn in Germany, and Malvern in the U.S. Reductions will be phased in throughout 2012. The goal is to save 1 Billion Euros in operating expenses by 2013.

Nokia's deal with Microsoft to run Windows Mobile on their smart phones has yet to generate much traction and sales. For Microsoft's part, they're busy touting new partners HTC and Samsung, causing some to wonder if Nokia is the odd man out in the relationship. Or maybe Nokia's management, always a favorite target of those throwing insults, has somehow mangled the Microsoft relationship.

Sunset for Nokia

Shops in London were looted but they say they haven't touched the Nokia shelf. ;)
Razvan Patrascioiu on techcrunch.com

>closes a factory in Cluj in Romania. Are you sure it's just a factory? With a name like that it'd be ideal as a Symbian development centre :)
AndrueC on theregister.co.uk

Nokia is slowly circling the drain.
James 51 on theregister.co.uk

I can't imagine why I would ever spend a penny on anything made by Nokia or Siemens, again.
tripzilch on news.ycombinator.com

Management failure

One piece of information that's missing in this article: Nokia closed down its plant in Bochum, Germany in 2008 and transferred the jobs to Romania in Eastern Europe where labour is cheaper. This damaged their reputation in Germany significantly. The Bochum theatre put up dumpsters where people could get rid of their Nokia phones and replace them with a competitor product. It's not a small irony that just 3 years later, the employees in Romania lose their jobs as well.
blumentopf on news.ycombinator.com

This what happens for companies that lack vision to forsee the future.

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