14 DAY TRIAL // Nokia announced recently new voluntary measures that are supposed to allow it to reduce personnel-related costs as well as the need for involuntary redundancies. According to the company, the new measures are part of the plan to increase cost-efficiency, which it previously announced.
Among the new initiatives the Finnish mobile phone maker announced we can spot the global Voluntary Resignation Package, as well as a wider use of short-term unpaid leaves and sabbaticals. The company announced that it encouraged its employees to take holiday as time off and not ask for cash compensation during the ongoing year.
“The response from employees and employee representatives in proposing ideas to help reduce personnel-related costs has been encouraging. 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. If successful, the voluntary initiatives will lessen the need for involuntary redundancies,” said Hallstein Moerk, Nokia's head of Human Resources.
The company also a stated that the global Voluntary Resignation Package would be made available for employees all around the world, excluding direct labour and senior executives. At the same time, the “terms and conditions of the package are in accordance with local practices and legislation,” said Nokia. Employees will be able to apply for the Voluntary Resignation Package starting March 1, and the initiative will be opened until 1,000 employees have applied, expected to close before May 31, 2009.
During the ongoing year, the company also announced that it planned to grant short-term unpaid leaves and sabbaticals, especially where operations allowed it and business continuity was not jeopardized. Moreover, the company will encourage employees not to cash in their holiday, but take it as time off.
Nokia says that the new measures are expected to allow it to reduce costs according to market demand. In addition, it will also seek savings in operational expenses, taking into consideration all areas within the company.