Nokia to lay off 2,000 workers at Salo plant for up to three months in 2010

Growth prospects for Salo handsets less than favourable

print this

The current growth prospects for Nokia’s mobile phones manufactured in Salo in the southwest of Finland are weak, which is why the mobile phone giant informed its staff at the Salo plant on Thursday that it plans to lay off all 2,000 workers for up to three months in 2010.
      ”We will be constantly following the situation, being ready to change our plans accordingly”, states Nokias internal communiqué.
     
Nokia’s most expensive and technically most complicated phone models are made at the Salo plant. They are customised particularly for large European teleoperators.
      The intention is that the production at the manufacturing plant will not be closed down at any stage, but the planned furloughs will be staggered so that only 400 workers will be laid off at the same time.
     
”In this market situation and given the customary seasonal fluctuation, we estimate that full production capacity is not necessary”, the company’s internal communiqué notes further.
      According to Nokia’s estimates, the mobile phone markets will shrink in 2009 by 7 % compared with the previous year.
      In recent years, Nokia’s competitiveness in smartphones has suffered a set-back, weakening the company’s profitability.
      At the same time, the proportion of the cheaper phone models in Nokia’s total sales has grown.
     
”When it comes to the backlog of orders, the lay-offs are partly justified. It will be interesting to see how we will be able to meet the drastic fluctuations in demand in the future. Even today, the production varies on a weekly basis in accordance with orders”, says chief shop steward Anne Malm.


Previously in HS International Edition:
  Nokia Siemens Networks to close Espoo factory and cut 560 jobs in Finland (11.2.2009)
  Nokia Siemens Networks cutting 750 jobs in Espoo (12.11.2008)

See also:
  Americans are waiting for that other Nokia (19.5.2009)

Links:
  Nokia

Helsingin Sanomat