Nokia Develops Salo Operating Mode for Smartphones - Cuts 285 Jobs

February 08, 2010

Nokia is planning to develop the operating mode of its Salo plant to ensure production is focused fully on the high-value smartphone market, especially in Europe. The key drivers for a new operating mode in Salo plant are diverse customer requirements, faster deliveries in high-end mobile device manufacturing and the company's transformation towards a solution-driven offering. The plans will result in the introduction of new and highly specialized manufacturing methods and also entail changes to personnel at the facility.

The planned new focus for Salo is expected result in 285 job cuts involved in production and in related support functions at Salo. Today, Nokia's Salo facility employs approximately 2 200 people.

Nokia will support alternative solutions, such as finding new positions at Nokia for as many employees as possible. Nokia will begin consultations with employee representatives about these plans, including discussions about voluntary severance packages. Additionally, Nokia plans to stop currently ongoing rotational temporary lay-offs at the Salo plant by the end of June 2010.

"Salo is a crucial part of Nokia's global manufacturing network. Plans involving changes to employees are always painful, and they are set in motion only after thorough consideration. However, with these plans our aim is to ensure the plant's future competitiveness and its special role as one best suited to the production of high value mobile devices," says Juha Putkiranta, Senior Vice President, Markets, Nokia.

Nokia has a global mobile device manufacturing network with ten manufacturing sites in nine countries - Brazil, China, Finland, Hungary, India, Mexico, Romania, South Korea and the United Kingdom.