Nokia Set To Cut 3,500 jobs by 2012

There was more bad news regarding the economy and jobs, and especially for workers of cellular phone giant Nokia Corporation.  According to reports, Nokia is planning to cut 3,500 jobs by 2012 to save cost due to its weakening global market share and stiff competition from its rivals. The Finnish company revealed it will soon  close a manufacturing plant in Cluj, Romania, by the end of 2011 which will mean 2,200 job cuts when supply chain operations are adjusted too.

Sources said the planned layoffs are in addition to 7,000 worldwide job cuts — which Nokia announced in April — through layoffs and outsourcing. Economic experts said the company decided to have a mass layoff in order to cut operating expenses by euro1 billi on ($1.5 billion) by 2013 amid fierce competition in the top end smartphone market from Apple Inc., Research in Motion and Google Inc., as well as from numerous Asian handset makers that produce cheaper phones in emerging markets.

Nokia explained the company decided to shut down the Romanian plant because its “high-volume Asian factories provide greater scale and proximity benefits”. Moreover, the company said it pains them to dismiss workers but they have to do so that they can survive the current financial crisis.