Grant Gross
Senior Writer

Nokia to close German plant, lay off workers

news
Jan 15, 20081 min

Nokia plans to lay off 2,300 employees at a German plant and move its mobile phone production to lower-cost European sites

Mobile phone maker Nokia will lay off 2,300 employees at a German plant and move production to lower-cost European sites, the company announced Tuesday.

Nokia plans to close the plant in Bochum, Germany, by midyear. Nokia also plans to close an automotive business there and is negotiating with Sasken Technologies to sell a Bochum-based software research and development entity, the company said in a news release.

The Bochum site was not “globally competitive,” Nokia said. Additional investments would not make the site competitive, the company said.

Nokia, based in Finland, announced last March that it was opening a manufacturing plant in Romania. The company also has a plant in Hungary.

Market changes and “increasing requirements for cost-effectiveness” mean that “production of mobile devices in Germany is no longer feasible for Nokia,” Veli Sundbäck, executive vice president of Nokia, said in a statement. “It cannot be operated in a way that meets the requirements for global cost efficiency and for flexible capacity growth. Therefore we have to make this tough decision.”

Nokia will negotiate with employee representatives to “reach a satisfactory solution” for everyone involved, the company said.

Grant Gross

Grant Gross, a senior writer at CIO, is a long-time IT journalist who has focused on AI, enterprise technology, and tech policy. He previously served as Washington, D.C., correspondent and later senior editor at IDG News Service. Earlier in his career, he was managing editor at Linux.com and news editor at tech careers site Techies.com. As a tech policy expert, he has appeared on C-SPAN and the giant NTN24 Spanish-language cable news network. In the distant past, he worked as a reporter and editor at newspapers in Minnesota and the Dakotas. A finalist for Best Range of Work by a Single Author for both the Eddie Awards and the Neal Awards, Grant was recently recognized with an ASBPE Regional Silver award for his article “Agentic AI: Decisive, operational AI arrives in business.”

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