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Nokia layoffs have big impact on small town in Finland

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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.