Nokia needs to cut more costs, implements Voluntary Resignation Package

By on Feb 24, 2009 at 4:58 PM
News February 24, 2009

The heat is on and Nokia appears to be feeling the burn as much as the next company as it has just announced a new round of cost-cutting measures that will go into effect next week. The Finnish handset manufacturer turned Internet Company revealed today that it will be introducing a new Voluntary Resignation Package that invites employees to voluntarily and amicably part ways with the company. This of course is in addition to the recent news of massive temporary layoffs at its production plant in Salo. A sound word byte from Hallstein Moerk, Nokia’s Head of Human Resources:

The response from employees and employee representatives in proposing ideas to help reduce personnel-related costs has been encouraging. We have considered these and are now announcing voluntary initiatives that could contribute to our efforts to adjust our cost base to the current market environment. If successful, the voluntary initiatives will lessen the need for involuntary redundancies.

Nokia will put the package into effect beginning March 1st and it will remain on the table until 1,000 employees have taken Nokia up on its offer. In addition, Nokia is encouraging its staff to request unpaid leave of up to one month and will happily grant such requests provided “business continuity is not jeopardized”. Sad news indeed, but we’re certainly hoping enough people can take advantage of the VRP and land gigs elsewhere so that Nokia doesn’t have to resort to any more “involuntary redundancies”.

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  • TRV$

    here’s what I don’t get…. Why does it need to be 1000 employees? Why can’t it be a cutback in 500,000 in salary? Keep employees, but ask if any would be up for a salary cut, keep the job, renegotiate down the road…

  • JLR – Canada

    What is the point in keeping employees around if there is nothing for them to do?

  • TRV$

    If there’s nothing for them to do, they should take the pay cut, start a new dev team, and create something that will garner them their wages back.

    We’re not going to fire you but you’re on half pay for 6 months. Come up with a winner, and you reap the rewards. If not, there’s the unemployment line.

    I’m not against cutting dead weight, but give these people an incentive to earn those paychecks. I’m sure the job market for that particular skill set isn’t exactly clamoring for new hires.

  • http://www.monsterandfriends.com drunknbass

    @TRV$,

    Yea I’m sure those 1000 people don’t already “earn their paychecks” huh? Seriously dude?! I doubt ANY co. Just hands out checks to people who show up on pay day. The people who SHOULD get canned are the higher ups who sit behind a desk and front like they are worth a damn because they somehow bullshitted their way into that position. It’s sad but usally the lower people on the food chain put much more blood / sweat into their work than these corperate jack offs.

    Posted from BGR Mobile (iPhone) at: Los Angeles California, USA

  • G

    @TRV$

    I believe you may be missing the point. From the first line in the quote “The response from employees…” To me this insinuates that there was a lot of comments from employees who wanted this option. For one, it may allow another to keep his/her job through someone else giving his/her job up for a cash settlement. Perhaps there are employees who have some tenure with Nokia, say 10-15 years or more and have other ideas in life in mind. Through this option they could walk away with a nice chunk of change in his/her pocket and use that towards their ambition or next goal. But, it is a crappy market right now and not sure who’d not want to have a job at this point in time.

  • TRV$

    @drunknbass

    we all know there are people at every company that works for their paycheck. I should have clarified about whom I was speaking. The employees that are on the bubble, whether due to disciplinary actions against them, lack of productivity, non-tenured etc. They should be the ones given the option to make a name for themselves. I do agree that the fat cats could definitely do without a certain portion of their salary and still be ok. Ultimately the company’s future rests on the shoulders of the head office folks, and they should bear some of the pain of lack of productivity.

    @g

    i did miss that part oabout the employees volunteering this particular option. I agree that the tenured employees may want the option to explore other options and if they choose to do so, then good luck to them. However it would be nice to see some news about companies options other than “uh oh, we’re not making as much as we did 3 years ago. let’s do lay-offs!!” I do understand that running a corporation as large as nokia is a monster of a ship to steer, but i’d just like to see the little guy prevail through all this.

  • pierre

    Actually I agree with tvr. My dad works for chrysler and when they offered management a package the ENTIRE management of a jeep plant took it. and when I say entire I mean the brought 2 managers from a diff plant because there was no white collar workers in the whole plant. Best part the next day production was the same. Little guy does the job big guy gets paid. A 2 or 3 percent paycut across the board would probaby cover the money they will cut with those 1000 jobs. Light a fire under their butts

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