Everything is getting closed, Salo residents complain

Jul 9, 2015 09:35 GMT  ·  By

Microsoft is firing 7,800 workers from its Phone Hardware unit, but in addition to the thousands of people impacted in the United States, many former Nokia employees overseas are also losing their jobs as part of the restructuring process that the software giant has started.

A total of 2,300 positions in Finland will be cut, CEO Satya Nadella has announced, while the research and product development center in Salo will be shut down. Salo first began its operations in the mid-1980s and was one of the most active Nokia facilities before Microsoft’s takeover.

When Redmond took over its Devices and Services unit, job cuts were expected, but nobody expected the software giant to shut down the facility completely.

Helsinki Times writes that Salo was a city that mostly relied on this particular production facility, so without it, every little business in the area is being impacted.

“Everything is being closed,” the newspaper reports citing a local resident. Schools are getting closed too, and local restaurants are mostly empty, with youths now worried that they won’t be able to find a job when completing their studies.

Some employees expect a transfer

With Salo clearly being severely hit by Microsoft’s decision, and Finland’s economy already affected by an unstable trend following the recession, many employees hope that the Redmond-based software giant would lend them a hand in the end and transfer them to a different facility.

Microsoft also operates a similar center in Espoo, and some expected to be transferred, although there’s still no indication that this could happen.

“We expect that both of these changes will result in difficult headcount reductions in the direct and supporting organizations. There may also be other reductions around the world as we further align our business for success in FY16. These transitions are difficult, and to employees who may be impacted by these plans, I would like to extend my sincere appreciation and thank you for your service and dedication to Microsoft,” company COO Kevin Turner says in an email to employees.

Since Microsoft purchased Nokia’s Devices and Services unit, the company fired more than 25,000 employees worldwide, most them former workers for the Finnish phone maker.