EMCC European Monitoring Centre on Change

Nokia

Company/Organisation:
Nokia

Geographic Location

Country: Finland
Region: Manner-Suomi
Location of affected unit(s): Espoo, Oulu, Salo, Tampere

Company

Sector: Manufacturing
Manufacture of computer, electronic and optical products
26.30 - Manufacture of communication equipment
Number Employed: 9100

Employment Effects

Announcement Date: 14-06-2012
Planned Job Reductions min: 3000
Planned Job Reductions max: 3700
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-09-2012
Foreseen End Date: 31-12-2013

Additional Information

Finnish mobile phone maker Nokia has announced up to 3,700 redundancies from its operations in Finland. The company has begun mandatory negotiations with employee representatives on the cuts. Cuts are to be implemented by the end of 2013.

Nokia's cuts in Finland are part of its intended worldwide cuts of 10,000 (see here). The company will now completely close its manufacturing plant in Salo, which was already targeted for cuts earlier in 2012 (see here). Nokia cites reduced sales and poor outlook as reasons for its cuts, which are just the latest in a series.

The scale of Nokia's redundancies has created a lot of public interest and activity. The government and unions have been activily involved. For example, prime minister Katainen and labour minister Ihalainen have visited the cities of Salo and Oulu.

The announcement has led to one walk-out from the Salo plant. According to employee representatives, Nokia is now offering smaller separation packages than it did earlier in spring.

UPDATE: 03-08-2012: Nokia has concluded negotiations regarding its units in Salo and Oulu. The company confirms the closure of Salo plant with 780 redundancies and reports 700 redundancies in Oulu (higher than previously estimated).

UPDATE, 28-02-2013: Nokia has concluded the final set of negotiations related to this announcement. It will lay off 210 employees from its information services and outsource another 660. The total reduction of the workforce is approx. 3000 (compared with originally announced 3700).

As reported, Finland has applied for assistance from the European Globalisation Adjustment Fund (EGF).

European Globalisation Fund: 2013 / 01