Nokia cutting more jobs in Finland
Voluntary severance packages offered again
The mobile telephone giant Nokia is cutting more jobs in Finland.
The company is trimming 100 jobs logistics and production management. In addition, it is offering incentives for 320 others to resign voluntarily.
When foreign jobs are included, a total of 170 jobs will be trimmed from production management and logistics.
“There will be no cuts in production or the sales companies. In Finland, the cuts target several communities”, says Ville Valtonen, Nokia’s personnel manager in Finland.
Nokia has operations in the Helsinki region, Salo, Tampere, and Oulu.
At the Salo factory, Nokia is trimming 320 jobs as a separate cost-cutting measure, by offering employees voluntary severance packages, which include a payment of the equivalent of 5-15 months’ pay, depending on how many years the employee has been working for the company.
Valtonen insists that the future of the Salo factory itself is not hanging in the balance.
“The question is one of adapting our production to the market situation. The initiative for voluntary severance packages came from the employees”, Valtonen says.
Voluntary redundancy packages at Nokia have generally been offered only to office workers. Anne Malm, head shop steward at Nokia’s Salo factory welcomes the offer.
“Workers earning hourly wages have felt that they are in an unequal position. In principle, this is a good thing, because we are now equal with the others”, Malm says.
Voluntary redundancy packages were offered by Nokia in February for up to 1,000 employees. All of the slots had been grabbed already six weeks before the time ran out. Slightly over half of the deals were taken in Finland.
Nokia hopes to scale back its operating costs by EUR 700 million by the end of 2010, in response to the decline in mobile phone sales.
Nokia estimates a ten per cent decline in worldwide handset sales this year than last. It means that more than 100 million fewer phones will be sold this year than last.
The Salo factory mainly produces smart phones that are tailored with software for large European telecommunications operators.
Previously in HS International Edition:
CEO Kallasvuo expects Nokia to emerge strong from economic crisis (24.4.2009)
Nokia posts better-than-expected Q1 result (17.4.2009)
Nokia cutting 700 more jobs in Finland (18.3.2009)
Nokia press release May 19, 2009: Nokia streamlines production support and administrative activities in its Demand Supply Network Management operations