Anger In Romania After Nokia Announces Factory To Close

Old NokiasOlder Nokia feature phones, similar to those produced at Cluj

Nokia has announced it plans to cut 3,500 jobs in it’s second major restructuring in a year, reports Reuters.The news has hit Romania especially hard, where Nokia’s plant in Jucu is facing severe job losses, according to reports from The Cluj factory will likely lose 2,200 jobs and face a complete shutdown.

ZF Business Tech Europe reports that the following note was sent to the Romanian workers that explains the company will be pushing a move towards Smartphones:

Nokia letter in English to Romanian workers 

Therefore, We plan to ramp down our manufacturing facility in Cluj, Romania by the end of 2011. We are aligning our manufacturing in Europe with consumer behaviour in Europe. Specifically, smartphones sales in Europe increased while feature phones have sales in Europe have decreased, and the Majority of our work in Cluj HAS Been around feature phones manufacturing. This is painful But Necessary, We recognise this and Has Significant impact on our employees, Their Families and the local community. We do our best to support Will our colleagues. 

We plan to shift gradually Also the focus in the Salo, Komarom factories from Reynosa and device assembly to customer and market-specific software package sales and customisation. Expected to continue tissue factories have to play a key role in serving smartphone Customers in Europe, Eurasia and the Americas. We Expect There Will Be Impacts to Personnel in 2012. The extents of this impact is Expected to Be Known in the first quarter of 2012 Consultations with Employee Representatives after. We Expect no impact to Personnel in 2011. reports that the Nokia 1650, Nokia 1200, Nokia 1208, Nokia 1209, Nokia 2600 Classic, Nokia 2630 and the Nokia 6300 were all produced at the plant. All were feature phones.

The plant in Roju was chosen over sites in Western Europe in 2008, prompting protests in Germany. The $88 million investment in the plant lead to a lengthy article in BusinessWeek, which makes an interesting read with the benefit of hindsight.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.