Nokia sending out 1,700 pink slips

Nokia is set to send out 1,700 pink slips worldwide in an effort to cut costs. The world’s largest cell phone maker needs to reduce employees in several of the company’s departments.
Forbes reports:

“Nokia are step by step disclosing more information about expenditure cuts,” said Thomas Langer, an analyst with WestLB, on Tuesday. “There’s definitely more to come.”

According to Arja Suominen of Nokia about 700 jobs will go in Finland, with the US and the UK. The second hardest hit is expected to be the head office in Farnborough, Hampshire. Plans to talk to employees are to begin soon.

Earlier plans to survive the global economic crisis saw voluntary resignations from up to 1,000 workers. That program is open to employees until the end of May. Those employees have been offered resignation packages to employees and encourage them to take unpaid leave to cut costs.

Bloomberg reports:

“It’s a sign the mobile phone market is still deteriorating,” said Mauritz Redin, Stockholm-based head of equities at Alfred Berg AB, which manages $27 billion in assets. “That they were going to reduce headcount, and the size of the cutback, were pretty much as expected.”

The job cuts are an effort for the company to reach their goal of 700 million euros saved this year.

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