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    Nokia layoffs have big impact on small town in Finland

    Nokia layoffs have big impact on small town in Finland


    As Nokia shifts its manufacturing operations to Asia, towns in its homeland of Finland are feeling the impact.

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    Nokia has been shifting its manufacturing operations to Asia in an effort to be more competitive, and it's a move that's not only impacting workers, but also entire towns — especially in the company's home of Finland. Nokia's plant in Salo, Finland is expected to see roughly one-third of its 3,500 workforce laid off, and with that comes less investment from the company. In 2010 Nokia accounted for 95 percent of the €60 million ($78.85 million) in corporate tax income the town received, but this year Salo's mayor expects the number to drop as low as €14 million ($18.3 million). "Nokia has been a status symbol for us," mayor Antti Rantakokko said. "But more than that it has been a major source of income." Salo has also seen a large percentage of its population become unemployed due to the downsizing. In 2010, 5,000 of the town's 55,000 residents worked at Nokia — by the end of 2012 that number will be just 2,500.