Redmond has confirmed new cost-cutting measures in Finland

Aug 21, 2015 14:51 GMT  ·  By

Microsoft has recently confirmed the closure of Nokia's Oyj's development center in Salo, Finland, according to a new report, while also revealing that 2,300 jobs would be cut at the factory.

The Salo facility was one of the largest Nokia handset product development units before the Microsoft takeover last year, and rumors on a possible closure emerged earlier this year when the software giant announced plans to cut 7,800 jobs globally from its phone division.

The new job cut announced for the Salo facility is part of the original layoff plan, but this is the first time when Microsoft confirms that the Finnish site is also hit by its restructuring measures.

According to a report by Reuters, Microsoft will keep its centers in Espoo and Tampere open.

Microsoft purchased Nokia's Devices and Services unit last year for $7.6 billion, and soon after the takeover was announced, the company started a massive restructuring plan that included a layoff of 18,000 employees worldwide and the closure of several former Nokia plants.

Earlier this year, Microsoft CEO Satya Nadella announced that this company was letting go an additional 7,800 employees worldwide, all working for the phone division, as the firm was working to rethink its mobile strategy and become a more effective player in this side of the market with fewer devices and an overhauled operating system.