Friday, February 27, 2009

Recession - voluntary lay-offs at Nokia

Nokia seeks 1,000 voluntary layoffs

Nokia Corp., which announced this month it was planning cut jobs, said Tuesday it will seek up to 1,000 voluntary resignations to further reduce costs amid the global economic downturn.

The world's largest mobile phone maker said it will open a global voluntary resignation package on March 1, and plans to increase short-term unpaid leaves and sabbaticals.

It also appealed to employees to accept holiday time as payments, instead of cash, for overtime work in 2009.

Nokia described as "encouraging" the response from employees and unions in proposing ideas to help reduce personnel-related costs.

"We have considered these and are now announcing voluntary initiatives that could contribute to our efforts to adjust our cost base to the current market environment," said Hallstein Moerk, head of the company's human resources. "If successful, the voluntary initiatives will lessen the need for involuntary redundancies."

Nokia said it will accept applications for the resignation package until May 31, or when 1,000 employees have applied.

Two weeks ago, Nokia said it will close a research center, ax up to 320 jobs and temporarily lay off 2,500 workers in Finland. It also announced some 90 layoffs in global support and new businesses departments.

The announcements came after the company last month warned of cost-cutting measures after its fourth-quarter net profit crashed 69 percent. It also lost market share - falling to 37 percent from 38 percent in the previous quarter.

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