Nokia Ends Assembly in Europe,Job losses
Seems most of our manufacturing jobs in the USA has went to China / Asia but we are not the only ones lossing jobs to the Chinese.Not too long ago we commented on the artivle of the iPhone jobs were lost in China,but Europe is having the same problem.
Nokia Corp. plans to stop assembling cell phones in Europe by year-end as it shifts production to Asia and will cut another 4,000 jobs, its latest attempts to cushion itself from stiff competition in the smartphone sector.
The Finnish company said Wednesday it will make the new job cuts at three plants in Finland, Mexico and Hungary this year as it reorganizes global manufacturing operations to compete better with the likes of Apple Inc.’s iPhone and handsets using Google Inc.’s Android operating software.
The cuts come on top of nearly 10,000 layoffs announced last year.
So what is the reasons stated for doing so?
Nokia said it had increasingly shifted cell phone assembly from Europe to Asia, where the majority of component suppliers are based, to help it reach markets faster. The company said it would not close the three factories, however.
“There will be no assembling of mobile phones at our plants in Europe after this,” Nokia spokesman James Etheridge said. “We plan to focus product assembly at our plants in Asia where the majority of our suppliers are based, while our facilities in Salo, Komarom and Reynosa will focus on the software-heavy aspects of the production process.”
Neil Mawston from Strategy Analytics said Nokia’s move “made sense” and was in line with what other cell phone makers had been doing for years, such as Samsung Electronics Co., Motorola Inc., and Sony Ericsson, which had large assembly plants in Europe.
Sure it makes sense if you are only looking at the profit fact … Or is it the fact that labor there is extremely cheap, thereby increasing the margins even more.Too bad one day they will realise the only folks who can afford the phones now are those in Asia.
