Tuesday, November 4, 2008

Nokia announces slight restructuring, Layoffs


Ok, this seems to be a never-ending saga. Just after I reported about EA laying off 6% of its staff, here comes more (expected) bad news.

Nokia has today announced plans for changes in some parts of its organization. The planned organizational changes would potentially "affect" 450 employees, according to Nokia.

Nokia is aiming for "changes in its sales and marketing activities in the Markets unit". The changes aim to strengthen the customer interface, ensure that resources are well allocated to meet the business needs and de-layer the organization. Nokia estimates that approximately 450 employees, maximum 100 in Finland, in the Markets unit will be affected by the planned changes.

Along with this, the Nokia Research Center (NRC), which specializes in long-term research activities within Nokia, is all set to focus on fewer but stronger research areas. The planned reorganization is estimated to have an impact on approximately 130 NRC employees globally, of which a maximum of 100 are in Finland.

Nokia has also announced that it plans to close off its Turku site in Finland and relocate those activities predominantly to Salo (Finland). Nokia currently has 220 employees working in the Turku office and the aim is that the employees would continue in Nokia's site at Salo or in the capital area in Finland. The closing of the Turku site is estimated to be completed by the end of January, 2009.

Other "global workforce adjustments" too are on the cards. These adjustments are estimated to affect approximately 35 employees, of which almost all are in Finland.

"Today's 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. Also, our aim is to find alternative work within Nokia for as many employees as possible," said Juha Äkräs, Senior Vice President, Human Resources, Nokia.

Gloomy days, eh?

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