14 DAY TRIAL // It seems that the largest mobile phone maker in the world, Nokia, is on its way to operate even more job cuts during the following months. The Finnish company already announced a few weeks ago plans to cut its costs this year, and the new series of layoffs is stated to be part of said plans.
Nokia announced on Tuesday that it would give the pink slip to around 1,700 of its employees in the next few months, and that several units of the company would be affected. At the same time, the job cuts will be performed on a global scale, says the phone maker.
Back in January this year, the Finnish company announced plans to cut its annual costs, and said that its key handset unit alone would see a drop in expenses of more than 700 million Euros ($909.3 million), as a result of the weaker mobile phone demand registered around the world during the economic turmoil. In addition to the handset unit, Nokia's marketing unit, corporate development office and global support functions are also expected to see a series of jobs slashed in the near future.
“Nokia continues to seek savings in operational expenses, looking at all areas and activities across the company,” stated the mobile phone maker, whose shares are reported to have seen a 2.9 percent drop, down to 8.73 Euros by 09:15 GMT.
The company announced about a month ago that its cost reduction plans also included a series of temporary layoffs, and two weeks ago mentioned personnel-related expense reductions obtained via a Voluntary Resignation Package, which was stated to become available for the company's employees all around the world, until 1,000 people applied to it. In addition, the phone maker also announced that it encouraged its employees to take their holidays as time off and not to ask for any cash compensations during the ongoing year.