Nokia announces 4,000 jobs cut in cost reduction measure  

Cell phone maker Nokia announced this week it would lay off thousands of employees as the company implements sweeping business cost reduction measures aimed at bolstering profit margins.

Nokia said Wednesday it would cut 4,000 manufacturing jobs as the company moves to improve efficiency and boost operating margins. The company, which is the world's biggest maker of cell phones by volume, is struggling against Apple and Samsung, among other technology giants, in the increasingly competitive smart phone and cellular phone market.

The Finnish cell phone maker said the cuts would affect workers at three of its production facilities in Hungary, Mexico and Finland. Nokia officials said they plan to shift those manufacturing plants to Asia so they could be closer to component suppliers. The move would improve efficiency as the company mulls additional tweaks to its supply chain management.

"Shifting device assembly to Asia is targeted at improving our time to market," Nokia executive vice president Niklas Savander said. "By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive."

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