This article was last updated on April 16, 2022
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It seems like Nokia has also been impacted by the economic recession as the company has recently announced reduction of 3,500 jobs, termination of a mobile-phone factory in Romania and investment of 1 billion Euros ($1.4 billion) with Siemens AG into their unprofitable network-equipment venture.
“It seems there’s a shortfall in volumes compared to what the company expected last spring and now they need to adjust production to meet lower levels of demand,” said Michael Schroeder, a Helsinki-based analyst at FIM Bank.
In April, Nokia announced a reduction of 4000 jobs and this news comes as part of this plot. The company has decided to shut down its handset developing plant at Cluj. Handset plants in Finland, Hungary and Mexico will also be reorganized and a possible cut of 1300 jobs is expected.
“Ovesen may be able to do another successful restructuring just as he seems to have done at TDC,” said Michael Hagmann, an analyst at Nomura International Plc in London. “At the end it may take a little bit longer until demand in this industry finally improves enough for Siemens to be able to offload its stake.”
The major market share of Nokia is said to be taken over by Apple Inc and HTC Corp, and without a doubt the usage of such phones has pushed Nokia a notch back in the market.
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