Nokia hangs up on Romania

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Nokia hangs up on Romania

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Nokia is cutting 3,500 jobs in its second major restructuring in six months.

The company, which still sells more mobile phones than any other handset maker, is struggling with falling sales and profits.

The cutbacks include the closure of its factory at Cluj in Romania which only opened just four years ago manufacturing more simple mobile phone models and where 2,200 people will lost their jobs there.

Nokia said a further 1,300 jobs would be cut at its Location & Commerce business unit, which includes the world’s largest digital mapping business Navteq.

Nokia said it was also evaluating the future of its plants in Finland, Mexico and Hungary and this would result in job cuts next year.

The latest redundancies come on top of cost cut plans set out in April which included laying off 4,000 staff. Thursday’s cuts are included in Nokia’s savings target of more than one billion euros, which was unveiled in July.

“This is very shocking. As if they had no policy at all in human resources, only lay-off talks rolling all the time. I wonder how people can work there, how people can focus at all,” Pertti Porokari, the chairman of Finnish engineers’ union (UIL), said.

“For sure the company is going through a massive reform, but it feels like the new direction is not quite under control.”