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Finnish company Perlos, which makes mobile phone casings for Nokia, has said it will cut 4,000 jobs, or a third of its worldwide workforce, by the end of the year to return to profitability.
"The company’s board of directors has today taken the decision to launch a profitability improvement programme, with the aim of considerably improving Perlos’ continuing operations’ operating profit" and achieving annual savings of around 100 million euros (129 million dollars), the group said in a statement.
"Perlos has a healthy and competitive core business, but its cost structure does not correspond to the current level of net sales," Perlos chief executive and president Matti Virtanen said Monday.
Virtanen later told a press conference that the share of group sales made up by its account with Nokia, traditionally its most important customer, had fallen.
"Nokia’s share of our sales of low-end mobile phone components is not at the required level," Virtanen said in comments published in the online edition of financial daily Kauppalehti.
Source: Physorg
Labor is cheaper in other countries, but in turn about 1200 people from Finland will loose their job. I always thought that Nokia being a Finnish company would want to keep ties with it’s fellow natives regardless of profit motives. I guess I was wrong. How do you think those 1200 unemployed Finn’s are going to think about Nokia now?
Maybe they’ll switch to Samsung.
About The Author
Stefan Constantinescu
Stefan Constantinescu (@WhatTheBit on Twitter) has loved technology since as far back as he can remember. It started with computers, but in the past few years his passion has turned to mobile devices. As a mobile phone enthusiast who lives and breathes devices that connect to the internet, he knows he is not alone with this radical fascination of all things wireless. He is strongly opinionated and enjoys a good debate so leave comments in his posts and he’ll get back to you! Stefan began blogging as a hobby in the fall of 2006 and joined IntoMobile in the summer of 2007. Later he got a job at Nokia in March 2008, but as of June 2009 he has rejoined the IntoMobile team. He is currently based out of Helsinki, Finland.
