Microsoft Closes Two Factories of Mobile in China, 9,000 Layoffs

The side effects of the acquisition of Nokia still appear: the Redmond company will close factories in Beijing and Dongguan which formed part of the purchase of Nokia mobile division. The cuts caused an even more dramatic consequence: the dismissal of 9,000 workers.
The These two factories closing mobile devices will produce the coming month, and dismissal – which began last year – will the global template of Microsoft up with 9,000 employees less. Microsoft already stated that the lay-offs following the restructuring program would affect 18,000 people.
The closure of these two plants is attached to the closure of Komárom in Hungary, and makes that are three of the six factories Microsoft bought as part of the settlement of 7,500 million dollars to acquire the division of Nokia mobile.
China had become long reference altogether to focus the global electronics production, but in recent times has lost favor with some of the greats of the technology. That economic growth in the Asian giant has caused a increase in the cost of labor, something that has made that production has moved several times to countries in Southeast Asia such as Viet Nam, Cambodia and Indonesia.
The own Microsoft focus its operations in Viet Nam, It is the country that was the more modern factory of Nokia. Stephen Elop, head of Microsoft devices division, has indicated that the bulk of the production of smartphones the company would focus on this plant.