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Nokia to slash 1,700 jobs

Source: PTI
Last updated on: March 17, 2009 16:59 IST
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The world's largest mobile phone maker Nokia will be trimming its workforce by 1,700 employees worldwide, as part of the company's cost cutting efforts.

The firm said on Tuesday actions would be taken at its devices and markets units as well as in the corporate development office and global support functions.

"... these plans will affect approximately 1,700 employees globally. Where applicable, Nokia will start consultations with employee representatives about these plans," Nokia said.

The cell phone maker noted that it intends to scale sales, marketing and technology management to match the pruned portfolio and global consumer demand.

According to the company, these measures are part of its previously announced plans to adjust business operations and cost base in accordance with market demand and safeguard future competitiveness.

"Nokia continues to seek savings in operational expenses, looking at all areas and activities across the company," it added.

Earlier this month, the firm announced a voluntary departure package aimed at bringing down its headcount by asĀ  many as 1,000 employees. It noted the package would lessen the need for 'involuntary redundancies' and also help in cutting costs.

The Finnish entity which is listed in the US, had said that the global mobile phone market is expected to shrink by 10 per cent this year in the wake of the financial meltdown.

"The voluntary resignation package will be open for application from March 1 until 1,000 employees have applied, closing at the latest on May 31, 2009," Nokia had said.

To have minimal impact on India operations: According to another report, Nokia said the planned job cuts worldwide would have minimal impact on its India operations.

"India continues to be a growth market for Nokia globally. Investments will continue to be in line with the opportunity. The impact on India will be minimal," a Nokia India spokesperson told PTI on Tuesday.

In India, Nokia has about 10,000 employees, including nearly 8,000 at its manufacturing plant in Chennai.

According to the firm's India spokesperson, the proposed job cuts would not be affecting the workforce at the manufacturing plant.

In fact, the company is still recruiting in India.

Meanwhile, direct labour and senior executives are exempted from applying for the voluntary resignation package.

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