Hungary: Nokia to close its Komaron factory in 5 months’ time, a race against the clock to redeploy as many workers as possible

On 17 July, Nokia announced that its factory in Komaron would close definitively, with all activity brought to a close on 30 November. This announcement came as a surprise, given that 2,500 employees were laid off in 2012, and it had been hoped that Microsoft, the new owner, would invest in the factory. Trade unions have negotiated a plan which involves increased severance payment and moves to redeploy workers; the plan is being assisted by the government, fearful of the consequences.
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Quick negotiations. The Nokia factory in Komaron is one of a number of sites set to close during 2014. The American company Microsoft is seeking to streamline operations and announced its decision to cut half of the 25,000 positions it took on in April 2014, when it took over Nokia’s mobile phone operations. The announcement was made on 17 July that the production site at Komaron, which manufactured the Nokia X range, would be closed.

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