Nokia cuts another 3,500 jobs

Summary:Nokia said that it will cut jobs in manufacturing, its location and commerce unit and the workers that support those efforts.

Nokia said Thursday that it will cut another 3,500 jobs across the company as it tries to align its costs with falling market share.

In a statement, Nokia said that it will cut jobs in manufacturing, its location and commerce unit and the workers that support those efforts. CEO Stephen Elop said:

"We must take painful, yet necessary, steps to align our workforce and operations with our path forward."

Elop also reiterated Nokia's commitment to Europe, which is taking the brunt of the job juts.

In April, Nokia said that it would cut 4,000 jobs as it focused its research and development on smartphones. Nokia's plan this layoff is to focus its manufacturing operations in Asia where it has the most demand. Specifically, Nokia said:

  • It will close a plant in Cluj, Romania by the end of 2011;
  • Review manufacturing operations in Salo, Finland, Komarom, Hungary and Reynosa, Mexico. Nokia said those plants will continue to focus on European and North American customers, but the focus is going to shift to "market-specific software and sales package customization." Nokia said there are likely headcount reductions in the first quarter of 2012.
  • Nokia added that it will consolidate its location and commerce business including Navteq. Nokia said its location and commerce development will focus on Berlin, Boston and Chicago. As a result, Nokia will shutter operations in Bonn, Germany and Malvern, PA.

The latest layoffs will be complete by the end of 2012. "Consultations" with employees involved in the previous round of layoffs are underway.


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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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