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Nokia closes plant as part of its restructuring

Posted: , by Alan F.

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Nokia closes plant as part of its restructuring
The plant in Salo has just produced its last handset

The plant in Salo has just produced its last handset

As part of its restructuring plan, on Friday Nokia closed its factory in Salo that produced handsets. The plant turned out its last unit today and was the last major cellphone manufacturing facility in Western Europe as production in the region has come to an end. 780 jobs will be cut during the year. The closing took place after talks with union representatives and the factory will be boarded up for good in September.

Last month, Nokia announced a major restructuring in light of the troubles it is having in the marketplace competing against Apple and Android manufacturers like Samsung. According to Nokia, up to 10,000 jobs could be eliminated by the end of 2013. The company has said that its plan is to reduce operating expenses while focusing on the location-based services it offers to its customers. Nokia also will attempt to sell its mapping and other location based services to industries where there is a use for the information.

Nokia's shares recently set a 52 week low at $1.63 before rebounding back over $2.00.

source: SlashGear

13 Comments
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posted on 27 Jul 2012, 14:07 10

1. tmcr7 (Posts: 148; Member since: 02 Nov 2011)


This is all Stephen Elop's doing. Tens of thousands of employees lost and will continue to lose jobs because he did not listen to what the customers want. He should be fired immediately. Vote of no-confidence now before it's too late.

posted on 27 Jul 2012, 15:35 5

2. Hammerfest (Posts: 360; Member since: 12 May 2012)


I wish casting a vote of no-confidense worked for anything... at all... but mainly for government officials...

There was a time when I wanted a Nokia phone (didnt have the cash), and the N9 is a nice looking device, sadly... tis the end for Nokia.

SELL SELL SELL ABANDON SHIP!!!

posted on 27 Jul 2012, 16:19 3

3. Veigald (Posts: 225; Member since: 13 Jan 2012)


Bollocks. Stop whining and face reality. Nokia is a business, and as such has to make decisions that is the best for its shareholders. From that point of view, this plant should have been close a decade or two ago.

This was the "last major manufacturing plant in Western Europe", why do you think everyone else shut down their manufacturing in the most expensive part of the world?

posted on 28 Jul 2012, 02:22 1

10. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)


I wish they could understand that instead of trashing Elop

posted on 28 Jul 2012, 10:29 1

11. picka_vi_materina (Posts: 159; Member since: 21 Nov 2011)


Are you aware what such a plant does for the local economy i.e. Finland? You seem to suggest all manufacturing plants should be in China. Nokia could afford to run it, manufacture without any issues, until Elop came along. And selling the mapping service, oh my, what's next, sell patents to Microsoft and "pet on your back, successful job finished, Elop."

posted on 28 Jul 2012, 11:07

12. Veigald (Posts: 225; Member since: 13 Jan 2012)


Of course it is a loss for the local economy, but here is what you must understand: Nokia is not responsible for Finnish communities. Nokia has an obligation to its shareholders to make the best business decisions, period. And as such, this decision should have been made a long, long time ago.

In the global economy, you need your expensive labour to provide high value, and manufacturing in Finland goes against that.

posted on 27 Jul 2012, 20:55 1

8. lubba (Posts: 1310; Member since: 17 Jan 2011)


Jobs lost is worldwide friend. Not just Nokia. Restructuring. They been losing money since iPhone came out. Bad economy. Once Nokia and economy improves, jobs be back.

posted on 28 Jul 2012, 02:06

9. kunyuk (Posts: 56; Member since: 29 Jun 2012)


Elop = illuminati/ anunnaki

posted on 27 Jul 2012, 17:14 2

4. xtroid2k (Posts: 319; Member since: 11 Jan 2010)


Veigald actually gets it. If Nokia had gone android it would have had to compete with so many manufacturers such as Motorola, HTC, Samsung. Do u catch my drift. By going with a platform that is still young, Nokia has a chance to gain a higher cut of the pie. WP is only Getting better. Yes this was a major risk however so is crossing the street.

posted on 27 Jul 2012, 18:57 3

5. Hammerfest (Posts: 360; Member since: 12 May 2012)


You really think that?

Im sorry to say that I ALMOST TOTALLY disagree with you!

Why you ask?

Simple really, Nokia has had a great many things going well for them, mainly, the design aspect, and the features they PUSH for their products, I honestly could say, that if the N9 or other similar phone had Android on it, I would have gone with it over any of the phones I have owned previously, if not for just the SPECTACULAR camera modules they have put in a great many of their devices.

Theres more to it as well, but time is short, dishes need to be done, and the kids need to be fed and put to bed.

Oh, and I said ALMOST totally, and I meant it, they dont have to compete with many companys, thats true, but from my own experience with a WP device, the DEVICE is nice, but Metro BLOWS... I know some people like it, thats fine, but mainstream users, according to published statistics at least, REALLY dont care for it. Not to mention its current market share and reception statistics paint a pretty accurate picture, at least in my mind, that picture you ask? A fish out of water floundering clinging to the last thread of life.

I myself LOVED the Windows 8 beta I first tried, where you could DISABLE MetroPOS er MetroUI, in the latest preview, you still cannot disable it... Geared for Tablets/Phones and yet marketed to PC users, CHECK PLEASE

posted on 27 Jul 2012, 20:51

7. lubba (Posts: 1310; Member since: 17 Jan 2011)


Those mainstream will eventually get over it. I've experienced change. Manager comes out demanding things will be done differently, everyone was like "f**k that! I ain't gonna do it! Gonna quit and find another job!" At the they start doing and eventually was normal and liked it. You see its all psychology s**t! Nobody likes to break away from the same ol routine. Its all about fear and territory. Once they they get over the hump, all the same but better. You'll see.

posted on 27 Jul 2012, 20:49 2

6. AeroPrime (Posts: 145; Member since: 21 Feb 2011)


Jolla might take over those factories

posted on 28 Jul 2012, 16:32

13. jack1059 (Posts: 72; Member since: 31 Mar 2012)


Cannibalising yourself is a sure sign of imminent death. Pure desperation moves at this point. Fire your in house sales, OS, and design talent. Close your premier stores (taken over mostly by samsung now). Then start killing your in house OS's (Symbian, S40, meltemi, meego) despite the fact the industry is moving towards in house OS and manufacturing. Factories are closed, a few rounds of staff firings. Say every things fine and bingo. Dead as doorknob. The name nokia might live on somewhere though, as that trademark gets sold. But the company is pretty much dead. Great job elop.

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