Nokia to cut 3,500 more jobs by the end of 2011

By on September 29, 2011, 12:00 PM

Nokia has announced plans to cut 3,500 additional jobs in an effort to streamline production and prepare for their collaboration with Microsoft. These latest cuts are in addition to the 7,000 jobs that were slashed earlier this year.

The Finnish company will shut down a manufacturing plant in Romania by the end of the year and move production to more efficient factories in China and South Korea to eliminate 2,200 employees. These factories are said to be closer to key suppliers and target markets.

An additional 1,300 workers will be released from commerce and location businesses in Malvern, Pa and Bonn, Germany. Nokia plans to focus development efforts in Berlin, Boston, Chicago and other areas, says CNN Money.

“We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger,” Nokia CEO Stephen Elop said. “We must take painful, yet necessary, steps to align our work force and operations with our path forward.”

Additionally, Nokia will evaluate the long-term role of manufacturing plants in Finland, Hungary and Mexico. The collective changes are expected to save the company $1.36 billion by 2013. 

Nokia’s partnership with Microsoft was announced early this year. The move left Intel out in the cold as Nokia was working with them on MeeGo. Intel has since locked arms with Samsung in a new venture tentatively called Tizen which is expected to debut sometime next year.

Nokia will adopt Windows Phone OS as their primary smartphone platform, pushing Symbian aside as a franchise platform OS. New phones from Nokia featuring Windows Phone operating system are expected later this year.

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