Unions have called on Nokia to take responsibility for helping those affected to find new work. Nokia says it is to draw up a plan with local authorities in Salo to help those who are losing their job.
The change will also affect plants in Hungary and Mexico. All assembly will be shifted to the company's factories in Asia. The facilities in Europe and Mexico will concentrate on smartphone product customization for Western markets.
"With the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers," said Niklas Savander, Nokia's Executive VP, Markets, in a statement. "They give us a unique ability to both provide customization and be more responsive to customer needs."
The company says the moves will affect some 4,000 employees in the three countries. Job cuts will be carried out by the end of this year.
Unions call for state intervention
The Trade Union Pro has condemned Nokia’s announcement of job cuts. Union chair Antti Rinne demanded Nokia give financial support to those employed at the Salo plant for decades.
Nokia's decision has also provoked a cool response from two major trade union federations. Both the blue collar SAK and white collar STTK federation are demanding cash payments for those affected in addition to training and recruitment advice.
In response, Nokia has announced it will provide help to the town of Salo. Niklas Savander said the company would draw up a tailor-made support plan together with local authorities with the aim of improving employment and training measures for those affected by the job cuts.
Savander did not, however, comment if those losing their jobs would receive financial support from Nokia.
Both union federations have called on the state to also lend a helping hand to the Salo region. They want a strategy to be devised allowing Salo to create new jobs and businesses.
Downsizing in Finland continues
During the past two years Nokia has shed its workforce in Finland mainly in the northern city of Oulu. In total some 3,800 people have lost their jobs in the company.
Two years ago, Nokia boasted a payroll strength in Finland of 13,900 people. Now that figure stands at 10,100 and does not include those working for Nokia Siemens Networks.
Nokia continues to downsize and the latest figures do not take into account the job cuts announced in Salo or reductions of 1,700 jobs announced last year.
