Nokia to cut another 3,500 jobs by 2012, close Romanian plant

Mobile phone giant Nokia plans to cut 3,500 jobs in Romania, Germany and the United States by the end of 2012 and close a plant in Romania as part of a new restructuring plan.

The planed layoffs are in addition to 7,000 job cuts already announced by Nokia in April when it unveiled a €1-bn cost-cutting programme. As part of strategy to focus on smartphones 3,000 staff were transferred to consultancy group Accenture.

Nokia said it would shut its plant in Cluj, Romania, and cut jobs in its location division, whose products include maps for mobile phones.

The company said in a statement, "Nokia plans to close its manufacturing facilities in Cluj, Romania, by the end of 2011... and plans to close its operations in Bonn, Germany and Malvern, US," by the end of next year.

Nokia's April announcment was primarily focused on aligning its R&D operations in smart devices and mobile phones, while  today's announcment is the company's next phase of what it describes as 'operational alignment', which includes plans for reductions in manufacturing, the location and commerce business, and supporting functions.

Nokia plans to focus on its feature phone manufacturing on those locations with optimal proximity to suppliers and key markets. Nokia's key market is Asia and the company plans to focus its feature phone manufacturing on its high volume Asian factories.