9,000 Laid Off As Microsoft Corporation Shut Down Nokia Plants

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9,000 Laid Off As Microsoft Corporation Shut Down Nokia Plants
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Software giant Microsoft announced on Friday, February 27th that it was closing two Nokia smartphone factories located in China as a part of its ongoing restructuring efforts. The plant closures will result in around

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A Microsoft spokesperson noted that the plant closings are part of the restructuring announced last July. “The timing of actual departure was staggered due to local and legal requirements,” he explained to the Seattle Times.

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More on the Microsoft – Nokia closure announcement

Company sources note that a good bit of the manufacturing equipment in China will be moved to factories in Vietnam, the report said, with the plant shut downs and equipment transfers projected to be finished up by the end of March.

The China plant closures are part of Microsoft’s restructuring announced last year, which will involve the elimination of 18,000 jobs worldwide, with 12,500 of these jobs from Nokia.

Of note, since purchasing Nokia’s phone operations back in April for $7.2 billion, the tech titan has laid off half of phone company’s 25,000 employees and shut down several Nokia facilities.

The firm is also gradually phasing out Nokia as the brand name for its Lumia smartphone models and has started selling phones under the Microsoft brand.

The move means most of Microsoft’s smartphone production is now in Vietnam, as is the case with many global smartphone manufacturers today.

Rapid economic growth has pushed wages higher in China, which means manufacturers are moving operations to Southeast Asia nations (especially Vietnam and Cambodia) where wages are lower.

For now, Nokia plants in Manaus, Brazil and Reynosa, Mexico, have managed to avoid closure.

Microsoft CEO Nadella on Microsoft restructuring

Microsoft CEO Satya Nadella said earlier that the firm is moving its focus to mobile devices, cloud computing and productivity software.

“Microsoft’s restructuring plan reflects dramatic shifts in the global mobile phone industry, given the short product life-cycle and high product turnover rate in recent years,” Nadella noted. “The advent of the smartphone era has also seen a number Chinese phone makers produce a diverse range of quality smartphones in addition to global brands like Apple and Samsung.”

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16 COMMENTS

  1. Wrong – go back and receive your punishment for being a useless chinese troll. China is a corrupt overblown communist failure. The USA is king and always will be – that’s why so many chinese thieves (the ones who made money while the economy was distortedly expanding) are buying up property and companies in the USA.

  2. there condition is the way it was before so dont think thats an easy way to do they too are human u r living in safe place but the have a very toxic place to live in y dont u shift ur place with one of them n try to live there
    u talk like u dont care but u dont knw u too are using there made items instead of being thankful ur being a lame weight on earth

  3. The same problems Nokia caused in China by laying off thousands will eventually happen in Vietnam as they move again to another country with cheaper labour. Large corporations pollute, do permanent damage to the environment, and they hurt people who have to live in those countries because they can get away with it. They cause economies to be unstable, and like all parasites they move from one host to next. Yes, bring them on, what’s one more parasite added to the mix.

  4. Hey it’s China, even if you remove 50,000 people from work there, the next day they have another factory work waiting for them. No big deal.

  5. I think you are both right. Elop was a disaster for Nokia but WP rocks and had Nokia gone to android they would have died quickly.

  6. The Microsoft is the best company in the world now. Since the time Microsoft developed the internet, the world is very much in order. The economy is under control. The communications is more comfortable. the human all over the world love each other more. Only thing is the China take advantage of it. Instead of make the world more enjoynable. The China try to destroy the world by produced a lot of dangerous items like bad food, and baby milk, and cheap junk products to maximize their profit, but they don’t care about the other people heath. So let’s close all the manufacturing facility in China and move it to Vietnam to make the world more enjoyable. Bravo. Microsoft forever.

  7. You are aware that as far as smart phones go when AAPL, ANDROID, and MFST (Lumia) devices are compared the MSFT device is usually the best device. So before anybody goes off the deep end on this statement I’m not talking about the what’s available from the app store, only the device (UX, OS, hardware, etc.). Nokia is not getting “thrown under the bus” because MSFT didn’t buy all of Nokia and MSFT is setting up their mobile devices business for the release of Windows 10. It also makes sense to consolidate their manufacturing operations especially if MSFT can also improve margins on the devices. I also hope that even though wages are lower in Vietnam and Cambodia that those wages are still a living wage and that working conditions are an improvement over some of their Chinese counterparts.

  8. I blame it on Stephen Elop. He went to head Nokia but acted like he still worked for Microsoft. As Nokia stuck to its strategy of Windows phones, that few people would buy, only Microsoft benefited as Nokia went downhill. A “nice” parasitic relationship. Eventually Microsoft acquires Nokia, Elop again works for Microsoft, and now Microsoft gets the opportunity to throw Nokia under the bus as they decide they want their own brand of Windows phones. What a farce.

  9. Don’t be surprised if a deal is struck between China and Nokia to reopen them next year when Nokia can start making phones again. I think they are setting up the ground work for going into Android phones. They still have a very marketable name.

  10. Jeezus microsoft……this news is so not good. Microsoft already gutted Nokia with a earlier layoff, and now close 2 more factories???? WTF I thought them buying Nokia was a good thing, but another 9000 workers laid off after already all of its mobile division, literally means they bought nokia just for the brand name, and then cut out the name. This news is really disappointing. Microsoft should be doing well enough to keep these factories open, and needs to ramp up production of their new phones, not cut it almost completely out!!! What the hell are they thinking??? UGGGHH.

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