Menu
Nokia to slash mobile phone production

Nokia to slash mobile phone production

Announcement comes after Nokia revealed its net profit for the last three months of 2008 was down 69 percent year-on-year.

Nokia has announced it will reduce production of mobile phones due to falling demand.

Sales of mobile phones are expected to fall this year as the credit crunch reduces the amount of disposable income consumers have to spend on gadgets and technology. Nokia said the move, which will take place at its plant in Salo, Finland, would save around EUR700m in costs.

Nokia said the factory's 2,500 staff would all be temporarily laid-off for a short period of time on a rotational basis, with 20 to 30 percent of the staff unemployed at any one time. The company also said it would be looking to cut costs in other areas of production process.

Nokia is cutting production for mobile phones such as the N96.

"With these plans, we aim to scale down Salo production to reflect reduced market demand, while operations in the factory continue uninterrupted," Juha Putkiranta said.

The announcement comes after Nokia revealed its net profit for the last three months of 2008 was down 69 percent year-on-year to EUR576 million. It also said ales dropped 19 percent to EUR12.7bn.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags Nokia

Featured

Slideshows

Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Show Comments