Nokia cost cutting

As part of a wide plan to cut costs, Nokia is now encouraging its employees to take advantage of a voluntary resignation package or go on short-term unpaid leaves or sabbaticals. The company is also pushing employees to take their holiday as time off instead of cash compensation. "If successful, the voluntary initiatives will lessen the need for involuntary redundancies," said Hallstein Moerk, Nokia's Head of Human Resources.

The voluntary resignation packages will be available for employees worldwide, except for direct labor and senior executives. The program is open for up to 1,000 employees, with applications accepted until May 31st.

It is unclear if the new programs offer an alternative to the previous job cut announcements, or if Nokia needs to trim its workforce further than the acknowledged layoffs. A rotating layoff system reported earlier this month will temporarily reduce 20 to 30 percent of the workers from its Salo, Finland plant as a way to reduce production during the period of reduced demand for its phones.

The company also plans to gradually scale back and eventually close its research and development facility in Jyväskylä by the end of the year. Both facilities were involved in the development of higher-end devices, although Nokia lost a significant portion of its smartphone market share to Apple and RIM last year.

By Electronista Staff