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Nokia Shifts Assembly Line to Asia, Cuts 4000 European Jobs

Finland based mobile phone giant Nokia has planned to move its assembly line from Europe to Asia which will see the Lumia maker cut somewhere around 4000 jobs.

According to a Herald Sun report, the primary motive behind Nokia opting for such drastic changes in its operational structure is to make sure that it can handle the stiff competitions from rivals like Samsung, Apple etc. in a much better and effective way.

Nokia has decided to cut jobs in its factories at Finland, Mexico and Hungary. The reason for such a transition by Nokia is that its pivotal component suppliers are settled in Asia and moving their assembling operations to Asia would help it to cater markets faster and in a much more efficient way.

"There will be no assembling of mobile phones at our plants in Europe after this" a Nokia spokesperson said to the press.

This will prove to be highly rational and economical for Nokia, as the labour costs, land costs as other operating costs are very low in Asia in comparison to Europe. Nokia has a rather strong hold over Asian handset (feature phone) market and knowing that it is not doing particularly well in smartphone industry, it may turn out to be a profitable move for Nokia.