Nokia closes plant, 'reorganises' 600 staff

Marketing dept takes the hit

Posted in Mobile, 5th November 2008 07:02 GMT

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Nokia will close its site at Turku, Finland and redeploy the staff there to Salo or near Helsinki. The company has also announced a "sharpened focus" that will put 130 research staff at risk - plus another 35 "workforce adjustments" in operations.

Around 200 of the staff are Finland-based, the rest are spread around the world and largely come from the marketing division of the company. Some layoffs would seem inevitable no matter how much the company tries to paint the process as "change and renewal".

Nokia is still selling a lot of handsets, though not as many as it would like, but has been piling money into various unfortunate Web 2.0 ventures with little hope of return. With revenues dropping some money has to be saved, so it's marketing that will bear the brunt of the cuts as any alternative would be to admit the fallacy of previous investments, something Nokia is not yet prepared to do. ®

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