The Salo, Finland, factory, which is Nokia's oldest manufacturing plant, along with the affected facilities in Komarom, Hungary, and Reynosa, Mexico, won't be shut down entirely, Nokia said.
Instead, the "three factories are planned to focus on smartphone customization, serving customers mainly in Europe and the Americas," Nokia said in a statement. "Device assembly is expected to be transferred to Nokia factories in Asia, where the majority of component suppliers are based."
Many of Nokia's competitors, such as Apple, HTC and Samsung, have the majority of their manufacturing in Asia and the region is also where the company's largest customer base is located.
"Shifting device assembly to Asia is targeted at improving our time to market," said Niklas Savander, Nokia's executive vice president of markets. "By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive."
Nokia's first Windows Phone handsets were introduced to consumers in the last quarter of 2011 and so far, the company has sold more than 1 million of the new smartphones worldwide. The Finnish company also reported a $1.38 billion loss in the fourth quarter of 2011.