14 DAY TRIAL // Today, Espoo, Finland-based mobile phone maker Nokia unveiled plans to give the pink slip to a number of 4,000 people, as part of its latest restructuring initiative.
By the end of 2012, the company's worldwide workforce, which includes 65,000 employees, would be impacted by said layoffs, which would occur in various countries where the company operates.
In addition to this, the company would move 3,000 employees to Accenture, part of the company's aim to move the Symbian software activities to this company (it would provide Nokia with mobility software, business and operational services for the Windows Phone platform).
The company announced that these reductions would take place in phases, and that the process is expected to be completed by the end of the next year. The job cuts would be tightly linked to the roll-out of new Nokia product and services portfolio.
“At Nokia, we have new clarity around our path forward, which is focused on our leadership across smart devices, mobile phones and future disruptions,” said Stephen Elop, Nokia president and CEO.
“However, with this new focus, we also will face reductions in our workforce. This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia.”
The handset vendor would increase capacity for the delivery of devices powered by Microsoft's Windows Phone platform. Moreover, the company would increase its investment on in Mobile Phones, and would build a team to focus on on future disruptions.
Given the large number of people who would be impacted by the move, Nokia announced that it would be actively involved in finding new jobs for those employees who will be sent home.
The leading mobile phone maker announced that it is putting in place a comprehensive social responsibility program that should provide help to people and communities affected by the layoffs.
Some of the support paths Nokia would offer to these employees include:
- A new job within the company – Nokia will seek to retain talent to the extent possible, by providing career counseling and helping employees identify job opportunities in Nokia.
- A new job outside the company – Nokia will offer career counseling, help identify job opportunities and work with our extensive network to create a dedicated job portal, linking employees directly with local companies and their resourcing needs. All employees can remain with the company throughout 2011, while employees affected in 2012 will be given a two-month grace period. In addition, employees will receive a financial package in accordance with local practices should they leave Nokia.
- Entrepreneurship – Nokia will offer training, funding, and help identify business opportunities and partnerships for those interested in starting a new business or a company on their own, which can fuel new growth for impacted communities.
- Career renewal – Nokia will work with local partners to create new opportunities through co-funded research programs, scholarships, supported employment in local not-for-profit organizations and other growth companies.
In Finland, the job reductions would impact a number around 1,400 employees, the company announced. No Nokia Siemens Networks jobs will be reduced at this time.
Among the impacted employees, we can also count an estimated 120 people at the Olympia Business Center site in Cluj, Romania. The facility is expected to be completely shut down by the end of the third quarter of the ongoing year. Nokia's Jucu factory won't be affected.