The shutdown is seen as part of Microsoft’s global restructuring of Nokia since its purchase of the company in the past year. (Photo : Reuters)
Microsoft is shutting down its Nokia factories in China and laying off about 9,000 workers, local Chinese media reported on Friday.
The factories affected are in Beijing and in the southeast city of Dongguan, which are connected to Nokia's mobile phone manufacturing operations, according to a report from the Beijing Youth Daily.
Some of the manufacturing equipment are to be moved to Hanoi in Vietnam, the report said, quoting an unnamed Microsoft official, with the closures and transfer expected to be completed by the end of March.
The move is seen as part of Microsoft's announcement in July the previous year to let go of nearly 18,000 jobs worldwide, with 12,500 of these jobs related to Nokia's operations, making it the biggest layoff in terms of size in the company's history.
Since taking over Nokia's mobile phone business in April for $7.2 billion, Microsoft has cut down around half of the iconic phone company's 25,000 employees and shut down many of its facilities to reduce costs.
The software giant is also gradually ceasing its use of Nokia as the brand name for its Lumia smartphone models and has begun selling phones under the Microsoft brand.
In an earlier interview, Microsoft CEO Satya Nadella said that the company is shifting its focus on mobile devices, cloud computing and productivity software.
"Microsoft's restructuring plan reflects dramatic shifts in the global mobile phone industry, given the short product life-cycle and high product turnover rate in recent years," the Taipei-based China Times newspaper said in a report.
"The advent of the smartphone era has also seen a number Chinese phone makers produce a diverse range of quality smartphones in addition to global brands like Apple and Samsung."
