16 January 2008 8:47 GMT / By Katie Scott
It is being reported that Nokia is planning to cut up to 2300 staff.
Reuters has published details of the manufacturer's plan to close a plant in Bochum, Germany, by the summer and to make 2300 employees redundant as it moves its mobile device production to a lower-cost region.
Nokia spokeswoman Arja Suominen said: "We are moving production to existing plants, mainly in Romania, which will start during the first quarter". He added that recruitment had already begun.
Nokia board member Veli Sundbaeck added that labour costs were almost ten times higher in Germany than in Romania and further investments could not save Bochum.
Nokia announced its plan to set up a mobile phone plant in Romania in March last year, investing 60 million euros.
Reuters adds that the Nokia plant closure is a second blow for the telecommunications manufacturing industry in Germany.
Just over a year ago 3000 employees lost their jobs when BenQ Mobile declared bankruptcy.
German Unions are expected to fight Nokia's decision. Ulrike Kleinebrahm, local head of union IG Metall and member of the supervisory board of Nokia GmbH (Germany) told Reuters: "This is a catastrophe for Bochum. The news hit us like a bomb".
"We cannot understand why Nokia is to close down this site despite having earned so much money here. The union will take action against Nokia's decision."
Nokia added that it also planned to sell its automotive accessory business and is in talks with Sasken Technologies to sell the Bochum-based adaptation software research and development unit.
Further bad news - Nokia's network gear venture with Siemens, Nokia Siemens Networks, is to cut 9000 jobs, or 15% of its global workforce, by the end of 2010, with 2290 employees to go in Germany.
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