Nokia flees Romania

It seems that the Finnish rubber boot maker Nokia is following the same policy as the ancient Romans and pulling out of the town of Cluj in Romania before the barbarians arrive.

Nokia is cutting 2,200 jobs by closing the its plant in Cluj, Romania, as it struggles with falling sales and profits. The last time the city of Cluj saw a pull out on this scale was in 274 AD when the Romans did not feel they could prop up the city any longer. The city was a wasteland until the Middle Ages.

It seems that Nokia’s policy of disconnecting people from their pay packets in Romania will not end there. A further 1,300 jobs will be cut at its Location and Commerce business unit, which includes the world’s largest digital mapping business, Navteq.

These lay offs are on top of plans set out in April to save a billion euros by laying off 4,000 staff.

Reuters said that the switch to Microsoft software for its smartphones will be too late to save any jobs. 

Nokia’s share price has halved since it announced the Microsoft deal on worries the company will lose so much market share before the new phones come out that it might never make up lost ground.