Despite some encouraging financials out of Espoo as of late, Nokia is looking to cut costs and slim down in its effort to keep its paws firmly around the coveted title of number one cellphone manufacturer in the world.
Its Bochum, Germany plant which will be closed by mid-2008; all told, a total of 2,300 jobs may be cut in the process. Nokia is smack in the middle of migrating some of its production capabilities to cheaper countries, with a Romanian plant -- which costs one-tenth to operate what a German plant does, apparently -- taking on much of the load.
And the reaction for this step today Juergen Ruettgers, the governor of North Rhine-Westphalia state, where Nokia’s factory is located had a few words to say :
- “I am very angry, above all about the way this happened.”
- “So far, there is no comprehensible reason why this decision was made.”
- “We are not simply going to accept this _ this is not yet the end of the debate.”
- “Nokia must think over what it has done here.”
- “The German market for cell phones is one of the biggest in the world.”
The harsh words were not the only blow to Nokia, State Economy Minister Christa Thoben is demanding Nokia pay back the 17 million euros worth of subsidies given to open the plant in the first place.
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