Finnish phone manufacturer Nokia, which has a partnership with Microsoft that includes adopting the Windows Phone operating system on all its smartphones, announced today it’s cutting 3,500 jobs.
The cuts come from Nokia’s plans to close its manufacturing facility in Cluj, Romania in favor of its high-volume Asian factories which the company says provide greater scale and proximity to suppliers and key markets. The cuts also come from shifting the role of Nokia’s manufacturing operations in Salo, Finland, Komarom, Hungary, and Reynosa, Mexico, to more of a focus on customer and market-specific software and sales package customization, according to Nokia’s news release.
It’s the second wave of cuts this year for Nokia, according to The New York Times which says Nokia Chief Executive (and former Microsoft senior exec) Stephen Elop described the Romanian plant closure as part of the company’s ongoing effort to streamline production, meet consumer demand for smartphones, and to prepare for Nokia’s software collaboration with Microsoft.
Nokia’s share of the smartphone market has fallen recently, putting it in third place behind Apple and Samsung.