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Nokia Reducing Handset Production at Indian Factory

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Nokia has reduced handset production at its Sriperumbudur, India factory due to reduced orders from Microsoft.

At the moment, Nokia still owns the handset factory which is subject to a tax dispute, and is acting as a contractor to Microsoft.

Production numbers have hit new lows, union officials said, noting that the factory is now working on a single shift, instead of the three that it is capable of.

The vast majority of staff have now also accepted a voluntary redundancy scheme. It had just 850 staff left, down from the company's peak of 6,600 that it once employed.

"The volumes the factory produces are lower than before, reflecting the smaller workforce. As a contract supplier to Microsoft, Nokia along with Microsoft continuously assesses volume requirements and plans production accordingly," Nokia said in a statement.

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Tags: nokia  microsoft  India