Nokia axes 4000 jobs, shifts device assembly to Asia

Nokia has announced its plans to shift its device manufacturing to Asia.

In a bid to increase its efficiency in smartphone production, the Finnish giant will move its device assembly to Asia which has become the hub for all major component suppliers.

Niklas Savander, Nokia executive vice president, Markets explains, 'shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive.'

He further said:  with the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers. They give us a unique ability to both provide customization and be more responsive to customer needs.'

This move bears tremendous impact on Nokia's factories in Komarom (Hungary), Reynosa (Mexico) and Salo (Finland). According to the company approximately 4,000 employees will be affected as a result. The job cuts are expected to happen in a phased manner across this year.

Those employees who survive will focus on smartphone product customization and serve customers mainly in Europe and the America.

The Finnish company got fresh lease of life with its Lumia range of Windows powered smartphones. The company intends to focus on its brand and is gearing up to launch its next Lumia Windows device at the upcoming Mobile World Congress in Barcelona.