Nokia Cuts 3500 Jobs, Plans on Shifting Production to Asian Units

Struggling Finnish mobile phone maker Nokia is reportedly planning to cut 3,500 more jobs as a part of a restructuring move under the leadership of Stephen Elop.

According to The New York Times, the company has announced that it is going to shut down a production unit in Romania, which would result in 3,500 jobs cuts, which is around 6 percent of its workforce.

The company, as it tries to streamline its production lines to meet consumer smartphone demands, plans to shift the production to its Asian units which are much more efficient.

“We are seeing solid progress against our strategy, and with these planned changes we will emerge as a more dynamic, nimble and efficient challenger,” Nokia CEO Stephen Elop said in a statement.

“We must take painful, yet necessary, steps to align our work force and operations with our path forward” he added.

The job cut announcement made by Nokia sent the company’s stocks up by 2 percent in Helsinki. Analysts believe that although the job cuts are unfortunate, the company needs to streamline itself and prepare for Windows Phone 7.