Nokia Firing and Relocating Some of Its Personnel

In an attempt to cut its losses following the worldwide financial crisis, Nokia announced this week that it would 'dispose' some of its personnel. The company said that the process is the result of its already planned organizational changes.

The following activities will suffer from cut jobs or personnel relocation:

1. Marketing activities in the Market unit where about 450 employees, maximum 100 from Finland, will be affected by these changes.

2. Nokia Research Center (NRC) will restrict long-term research activities, by focusing on fewer research areas. These will have an impact on about 130 employees, maximum 100 from Finland.

3. Nokia's Turku site from Finland will be closed and all employees will be relocated. Turku site has 220 employees, and all will continue to work for Nokia at Salo site or in the capital area of Finland.

4. Nokia will also cut another 35 jobs globally, from “work force adjustments”, almost all from Finland.

Overall, around 600 Nokia employees will be fired, so that the Finnish giant can keep up with the profit losses expected in Q4 of 2008, but mostly in 2009. The whole process will come into effect starting January 2009, while Turku's relocation plans are to be finished by the end of January next year.

The company stated that these changes “are part of Nokia's constant renewal where it is important to be close to our customers and ensure that our people are able to focus on the key business priorities,” and that “our aim is to find alternative work within Nokia for as many employees as possible”. While Nokia's Senior Vice President, Human Resources, Juha Akras tries to deny that the company has any financial problem, this is not the first handset manufacturer that is forced to fire some of its personnel because of important profit losses (see Sony Ericsson and Motorola).