Layoffs are a common occurrence these days, and even leaders in the mobile industry are not exempt from implementing such cost-cutting practices. Such is the case with Nokia.
The Finnish mobile phone giant will temporarily lay off 2,500 of its staff at their Salo plant in Finland on a rotational basis. This is part of their goal of reducing production and hopefully save the company more than 700 million Euros in operational costs. Their Salo plant played a major role in Nokia’s climb to the top spot and this latest news is a reflection of how they’re significantly affected by the ongoing economic crisis as well as the growth of Apple and RIM in the industry.
Here’s what senior Nokia official Juha Putkiranta had to say about their latest move:
With these plans, we aim to scale down Salo production to reflect reduced market demand, while operations in the factory continue uninterrupted.
Nokia is also expected to close down a research site that employs 320 people in the town of Jyvasklya in Finland while 90 jobs are also on the line elsewhere.
Whether it be through layoffs or other cost-cutting measures, companies are striving to make the necessary adjustments so that they can weather the current economic storm and keep their heads afloat in these very trying times.