Nokia to cut 1,700 more jobs

Monster handset vendor Nokia announced plans to slash a further 1,700 positions on Tuesday, as it continues to streamline its operations.

As part of its previously announced plans to cut costs, the Finnish vendor is decreasing its workforce in its Devices and Markets units as well as in its Corporate Development Office and global support functions.

Nokia plans to scale sales, marketing and technology management to match the pruned portfolio and global consumer demand; address the marketing and other activities that will no longer be integral following the Symbian acquisition; streamline the Devices R&D organization; and increase efficiency in certain global support functions.

Altogether these plans will affect approximately 1,700 employees globally.

Last month Nokia called for 1,000 employees worldwide to consider voluntary redundancy package. The firm said that its voluntary resignation package will be open from March 1 until 1,000 employees have applied, or until May 31. Direct labour and senior executives will be excluded from the deal.

Nokia said that the new voluntary measures aimed at reducing personnel-related costs will lessen the need for involuntary redundancies and will be supported by wider use of short term unpaid leave and sabbaticals.

The company said it is closing one of its research and development sites in Finland and temporarily laying off workers at another.

The Finnish firm was the latest big vendor to report disappointing handset shipments during the fourth quarter, with numbers dropping 15 per cent year on year to 113.1 million, and falling from 117.8 million shipments in the third quarter of 2008. These latest initiatives are all part of previously announced cost cutting actions.