September 25, 2012 11:26
The Korean manufacturing unit of Finnish mobile phone maker Nokia is to lay off 75 percent of its production line workers. The company, Nokia TMC, will lay off 225 of its 950 production staff, according to insiders in the Masan Free Economic Zone on Monday.
The company plans to get as many staff as possible to take early retirement packages and is apparently in talks with them over the size of severance payments.
Nokia TMC is one of 10 overseas production facilities operated by the Finnish company.
Nokia's earnings have plummeted since it missed the smartphone revolution, and it announced a major downsizing plan in June of 20 percent of global staff or 10,000 workers.
The company also plans to sell off some businesses, hire new management and shut down factories in Finland, Germany and Canada.
Once the world's biggest manufacturer of mobile phones, Nokia was hit hard in the late 2000s, losing precious market share to Apple and Samsung. Failing to come up with a smartphone that could compete with the iPhone or Galaxy series, Nokia suffered plummeting sales and falling share prices.
Nokia TMC, established in the 1980s, has been a key overseas manufacturing base for the Finnish company. In 2008, at the peak of Nokia's global sales, the Korean plant generated more than W4.6 trillion (US$1=W1,121) in revenue, but last year they dwindled to W2.8 trillion.
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