Nokia to lay off 2,300 Hungarian workers

Finnish electronics giant Nokia has announced on Wednesday that it will lay off 2,300 people from its smartphone factory in Komárom, northern Hungary. The Hungarian Ministry of National Economy and Nokia will establish a workgroup to help the laid off workers.

Nokia will cut around 4,000 jobs from its factories in Komárom, Hungary Reynosa, Mexico and Salo, Finland. The measures follow last year’s review of smartphone manufacturing operations and "aim to increase the company's competitiveness in the diverse global mobile device market." Device assembly is expected to be transferred to Nokia factories in Asia where the majority of component suppliers are based.

Nokia executive vice president for markets, Niklas Savander stated that with the planned changes, remaining employees in these factories “will continue to play an important role serving our smartphone customers. They give us a unique ability to both provide customization and be more responsive to customer needs." These three factories are planned to focus on smartphone product customization, serving customers mainly in Europe and the Americas.

He added that "we recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition." Personnel reductions are planned to be phased through the end of 2012. Nokia will offer a comprehensive locally-tailored support program, including financial support and assistance with local re-employment.

Following Nokia’s announcement, the Hungarian Ministry of National Economy said in a brief statement that it will establish a workgroup with Nokia to help the laid off workers. After the lay-offs, the Komárom plant is expected to continue operations with 2,100 employees.