Top cellphone maker Nokia said on Wednesday it would cut production at its Salo plant in Finland as demand for cellphones has dropped,
and close a research site in the Finnish town of Jyvaskyla. Cellphone sales are set to drop this year, hit by consumers' reluctance to spend on new gadgets in the midst of the economic recession and large inventories built up by phone sellers at the end of last year.
"With these plans, we aim to scale down Salo production to reflect reduced market demand, while operations in the factory continue uninterrupted," Juha Putkiranta, a senior official at Nokia, said in a statement. Nokia said it would continue to seek savings in operational expenses, looking at all areas and activities.
The firm said its phone development site in Jyvaskyla employs 320 people. It will also look to cut 90 jobs elsewhere in Finland. In Salo, it will temporarily lay off 20-30 percent of the staff of 2,500 on a rotational basis. Nokia has said it plans to cut annual costs by 700 million euros ($905 million) at its key cellphone unit during 2009.
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