Flextronics International Ltd, maker mobile of phones for Sony Ericsson Mobile Communications and the Xbox 360 game console for Microsoft Corp, agreed to buy smaller rival Solectron Corp. for about $3.6 billio
1. Flextronics may eliminate as many as 1,500 jobs.
2. It has moved production to lower-cost countries such as India to improve profitability
3. It will close some factory space in North America and Western Europe.
4. The combination will generate at least $200 million in after-tax cost savings in 18 to 24 months.
This is the cost saving trend: cut jobs, close factories, move to cheaper locations
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