* To cut assembly jobs in Finland, Hungary, Mexico
* Moves smartphone assembly to Asia
* Shares 1.3 pct higher
By Tarmo Virki, European Technology Correspondent
HELSINKI, Feb 8 Struggling Finnish phone maker
Nokia plans to cut 4,000 more jobs at its plants in
Finland, Hungary and Mexico as it seeks to cut costs by moving
smartphone assembly work to Asia.
The cuts of 8 percent of the phone business workforce, bring
total planned job cuts at the group under Chief Executive
Stephen Elop to more than 30,000.
Nokia said in a statement the job cuts would take place in
phases through this year. It has been reviewing the operations
since unveiling the closure of its Romania plant last
"This was inevitable. It was a surprise it took so long for
the decision to be made," said Steve Brazier, chief executive of
technology research firm Canalys.
Nokia's Finnish factory in Salo, which was the cornerstone
for its success in 1990s, has long been the last phone assembly
plant in the Western Europe as most rivals have moved their
production to Asia.
"Stephen Elop may be a polarising figure, but he is proving
effective at driving the change and he should be credited for
that," Brazier said.
Nokia said it would cut 2,300 jobs in Hungary, some 1,000
jobs in Finland and remaining jobs in Mexico.
On Jan. 26 Nokia reported a 73 percent fall in
fourth-quarter earnings after sales of its new Windows Phones
failed to dent the dominance of Apple Inc's iPhone or
compensate for diving sales of its own old
Its smartphone sales shrank 31 percent from a year ago and
the business made a steep loss for the quarter.
Nokia announced in April last year it would cut 7,000 jobs
and unveiled a further 3,500 job losses in September. Its
network arm Nokia Siemens announced cuts of 17,000 in November.
The group had 130,000 staff at the end of 2011, including
Shares in Nokia were 1.3 percent higher at 3.934 euros,
slightly outperforming the technology share index which rose 0.6
percent, by 0900 GMT.
"It was well in line with Nokia's previous comments," said
Pohjola analyst Hannu Rauhala. "Now they just specified the
number of job cuts."