Nokia suspends use of subcontractors for manufacturing

Nokia has temporarily suspended using subcontractors for parts of its phone manufacturing process. The company said it has stopped using subcontractors for engine manufacturing, or the process of making the phone and phone software. Nokia has outsourced around 17 percent of that part of its phone manufacturing.

However, the company said it would still use subcontractors for packing and logistics. A company spokeswoman said she did not know when the company would be using subcontractors for engine manufacturing again. Some of the companies that Nokia has outsourced manufacturing to include Foxconn, China's BYD, Jabil Circuit and Elcoteq.

The move is the latest in a series Nokia has made in response to falling handset demand. Earlier this month the Finnish company said it was going to cut 1,700 jobs as demand continued to drop.

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