A Nokia spokesperson confirmed on Thursday that Nokia will cut fewer jobs in an upcoming round of layoffs than it initially announced. Speaking with Bloomberg Businessweek, Nokia spokeswoman Paeivyt Tallqvist confirmed that Nokia’s upcoming workforce reductions would trim 500 workers from various locations in Finland. The cell phone maker said last month that 800 employees would be let go. According to the revised agreement with unions, Nokia will cut 120 jobs from its headquarters in Espoo, 198 from its Tampere location, 103 from Oulu and and 82 from its manufacturing plant in Salo. More →
Nokia confirmed Tuesday that it plans to cut approximately 800 jobs in its home country of Finland. The newly confirmed work force reductions are in addition to the 1,800 jobs Nokia announced it would have to cut this past October. Nokia said it has concluded negotiations with employee representatives, and it will give affected workers between five and 15 months salary as severance. Nokia stated that the new round of layoffs will begin in January 2011, and it hopes some of the laid off employees will be relocated elsewhere in the company. More →
Last Friday, HP CEO Mark Hurd resigned amidst sexual harassment allegations that his former employer chose to make public. Monday, in a letter to the New York Times, Oracle CEO Larry Ellison did not mince words about his thoughts on the forced resignation of Mr. Hurd. “The H.P. board just made the worst personnel decision since the idiots on the Apple board fired Steve Jobs many years ago. […] In losing Mark Hurd, the H.P. board failed to act in the best interest of H.P.’s employees, shareholders, customers and partners. The H.P. board admits that it fully investigated the sexual harassment claims against Mark and found them to be utterly false.” Ellison went on to say, “publishing known false sexual harassment claims is not good corporate governance; it’s cowardly corporate political correctness.” Hurd, who had been with HP for five years, is set to receive a severance package of cash and stock worth an estimated $28 million. At least he won’t go away empty handed? More →
Word broke out over the weekend that Microsoft had sent letters to ex-employees asking for repayment of severance package overages. Apparently damage control was able to beat the Grinch out of HR because the company apparently decided to do the right thing. Microsoft human resources chief Lisa Brummel says the company is reversing its course of action and contacting those who received the notice to advise them that repayment is not necessary. About 25 ex-employees were overpaid and 20 were underpaid due to the error. We’re also glad to hear the workers who were underpaid will be compensated for the amounts they were due. Lesson learned for Microsoft: There are some cases where accounting errors can’t, or shouldn’t be fixed and this is one of them. The former employees who spoke up can also give a nod to the media for spreading the news like wildfire and bringing it to Microsoft’s (and everyone else’s) attention.
Microsoft has allegedly sent out a notice to former employees (those who were recently laid off) to come back so they can pour a little bit of salt in their wounds. Apparently, human resources in Redmond made a little oopsie and overpaid severance for some ex-workers. According to the notice, the folks in question have two weeks to send a check or money order back to Microsoft to cover the overage. The error may have also caused underpayment of severance for other former employees. This isn’t shaping up so well for Microsoft and for those who are being forced to send in payments to correct an HR error. Imagine receiving news of your impending layoff and then being sent packing with your check, only to receive a notice later that effectively reads, “Our bad. Send some of that money back, please.” No official word from Microsoft as to when the error occurred and why.
One would think that a company struggling and bleeding customers like Sprint would have executives bleeding themselves. Not so. Even after their obvious hardship to stay competitive, the fines and fees they’ve paid out for various reasons, like settling on litigation against ETFs, Sprint/Nextel executives are tops when it comes to compensation. It’s not a surprise that corporate bigwigs are still getting paid despite poor performance, but it does irk a few consumers. According to Standard & Poor’s index of large companies, Sprint had the worst pay-for-performance in 2007 — imagine that. Sprint spokesperson James Fisher said “It’s very important to consider that 2007 was a highly unusual year because of compensation that was paid to an exiting CEO, as well as sign-on compensation paid to a new CEO,” and continued their defense, “We had significant other severance charges for executive changes during the year.” Whatever dude.
Of course, there is a new CEO in Dan Hesse, a man who prides Sprint in the fact that consumers can e-mail him “directly” with questions and concerns. Hesse replaced Gary Forsee (We wonder if Forsee foresaw his own demise) who received $22.4 million in total compensation last year… got to love severance packages. Another $74 million went to the rest of the top management team. This kind of corporate behavior, amongst other things, is part of the reason we’re struggling and resorting to multi-billion-dollar bailouts.