Stumbled across this http://genzai.tumblr.com/post/48947084865" onclick="window.open(this.href);return false;
no further info available except that it's probably from Japan, the source link points to a dead page. Google image search is also helpless here.
From the looks of it, I suppose it is not a real removal. It looks rather like sewing the areola over the actual nipple. But I might be wrong. So it is probably just a temporary mod, not something permanent.
Removal of female nipples can result into huge problems should she become pregnant - there are glands that produce milk and nipple is the exit path of those. Without removing the glands as well (as happens in mastectomy), it should't be done. However, if full mastectomy was done, I kinda like the look of fake boobs without nipples, rather than fake nipples as well.
snake07: you are probably right, although all areola sewing that I've seen before didn't look nearly as neat as this. It's just the quantity/size of the stitches, the overall area, the apparent skin tension. It also looks a bit like it's half-healed. All together doesn't come up as simple sewing, though it could be just because the photo is blurry. Then again people do really crazy things. It's such a shame that there's not a single trace of info about this picture.