UPDATE 1-Nokia trims German handset unit, 300 jobs to go
(Adds details in paragraphs 3-8, share price paragraph 9)
HELSINKI, June 8 (Reuters) - Nokia said on Friday
it would trim its German handset manufacturing unit, threatening
300 job cuts, as the world's largest mobile phone maker seeks to
boost effiency in a slowing global market.
"We've started negotiations about possible 300 job cuts
there," said Nokia Mobile Phones spokesman Tapio Hedman. "We're
restructuring to boost efficiency in the company."
Nokia said the Bochum factory in Germany, which employs
3,000 people, would increasingly focus on the final assembly of
mobile phones, while part of the current board assembly would be
shifted to other facilities and to contract manufacturers.
The Finnish company said the changes were expected to be
completed by the end of this year.
Like rivals Motorola and Ericsson , Nokia
has been outsourcing more mobile phone production, shifting
operations to low-cost countries and trimming operations to cut
costs as the demand for mobile phones slows.
"Our target in the mobile phone industry is to continue
leveraging our leading position and to further increase our
global market share," said Anssi Vanjoki, Executive Vice
President of Nokia Mobile Phones.
"In today's business environment, we continuously need to
strive to increase our overall competitiveness with all possible
means," he added.
Nokia has a handset market share of over 35 percent compared
with over 13 percent share by its nearest rival Motorola Inc.
Nokia shares traded 0.83 percent lower at 35.70 euros at
1430 GMT, slightly underperforming the Dow Jones European
technology share index <.SX8P>.
Nokia employs around 60,000 staff worldwide.
REUTERS
Rtr 11:29 06-08-01 |
