Nokia to cut 4,000 jobs in Europe

Nokia said it will slash 4,000 jobs in Finland, Mexico and Hungary in a further move to cut costs as it struggles against stiff competition in the smartphone market. The layoffs, to be completed by the end of 2012, are part of more than 7,000 global layoffs the Finnish company announced last year. Nokia said it is increasingly moving cellphone assembly from Europe to Asia where the majority of component suppliers are based, but would not close the three plants in Komaron, Hungary; Reynosa, Mexico; and Salo in Finland. “These three factories are planned to focus on smartphone product customization, serving customers mainly in Europe and the Americas,” said Niklas Savander, from Nokia’s markets sector. “(They) will continue to play an important role serving our smartphone customers.” Last month, Nokia reported that smartphone sales plummeted 23 percent globally in the fourth quarter as net revenue fell 20 percent to €10 billion ($13.11 billion) compared to a year earlier. Nokia has lost its once-dominant position in the global cellphone market, with Android phones and iPhones overtaking it in the growing smartphone segment.