Nokia to lay off 2300 employees in Komárom
Nokia has decided to dismiss 2,300 employees in Komárom due to changes in mobile industry rather than cost efficiency - said Niklas Savander, Executive Vice President of the Markets unit of Nokia Corporation today. The Hungarian government was notified yesterday about the final decision, although references has been made in recent days.
8 February 2012
Savander stressed that reorganisation of production structure and moving production to Asia basically justified due to higher speed in production rather than cost and expired funds and transfers from European countries - the most assembly process has already been taking place and suppliers are now in Asia. Thus, additional state aid would have not helped the company to keep jobs in Europe, which already fulfilled commitments for provided financial support.
Labour cost does not matter
The businessman explained, the smartphone industry is about the faster introduction of new products, therefore, assembly of products is important to be done closer to suppliers. Labour force related cost is no longer playing an important role in cost efficiency - he added. Savander stated Komárom and the Finnish factories will continue to play an important role in the regional software customisation, management of local sales process and logistics activities.
Nokia will stay in Komárom and despite lay-off the company will remain the region's largest employer in the future as well - said Dr. Attila Molnár, Mayor of Komárom. "Nokia had already indicated to rethink the position of European interests, so also the Komárom factory last fall after the company closed the factory in Kolozsvár, Transylvania" - reminded the mayor.
- 1. CNN - Water polo is part of Hungary's DNA
- 2. Tímea Babos continued her breakthrough
- 3. Film friendly production - Shoot in Hungary
- 4. Hungary started to repay IMF loan of 2008
- 5. Crédit Agricole to quit Hungary
- 6. Diehl Group in Nyírbátor
- 7. The Necessary Death of Charlie Countryman
- 8. Hungarians to drink Canada Dry?
Sign up for updates