Nokia (NYSE:NOK) will cut 4,000 more jobs at plants in Finland, Hungary and Mexico. The company is trying to cut costs and will move assembly of its smartphones to Asia. These cuts represent 8% of their phone business workforce and brings the total cuts since September 2010 to over 30,000 jobs.
In a statement, Nokia said the cuts would take place in phases throughout the year. The company had been reviewing its operations since closing a plant in Romania last year.
“This was inevitable. It was a surprise it took so long for the decision to be made,” said Steve Brazier, chief executive of technology research firm Canalys. “Stephen Elop may be a polarizing figure, but he is proving effective at driving the change and he should be credited for that.”
These drastic cuts are seen as necessary following last month’s quarterly results. Earnings fell 73% last quarter as sales of new Windows phones failed to make any dent in Apple’s dominance or help prop up falling sales of their own smartphones. Fourth quarter smartphones fell 31% from the same period a year gao.
Nokia Corporation (NYSE:NOK) is currently trading up 1.36% at $5.20. The stock has traded 2.1 million shares and trades 30.3 million shares a day on average.