Nokia has announced the first tranche of job cuts following the announcement of its partnership with Microsoft which will see 4,000 lose their jobs outright while a further 3,000 will head to Accenture.
The announcement was made by Nokia CEO Stephen Elop, who revealed that the 4,000 job losses would be mostly in Finland, Denmark and the UK. It is believed that a total of 700 jobs will be lost in the UK. Previously trade unions representing workers in Finland were demanding up to €100,000 per employee in redundancy payments, but last week announced they were happy with how Nokia was going about the jobs cull. While 4,000 will lose their jobs outright, a further 3,000 employees who work in Symbian OS development, will be shipped off to Accenture. This will mean that the responsibility for Nokia's dead-in-the-water OS, will transfer to the consulting and outsourcing firm Accenture. The lay-offs will occur in phases with all employees being allowed to remain with Nokia until the end of 2011.
Nokia also plans to consolidate the company's research and product development sites so that each site has a clear role and mission. Nokia expects the expansion of some sites and the contraction or closure of others. “This is a difficult reality, and we are working closely with our employees and partners to identify long-term re-employment programs for the talented people of Nokia. We are offering those who are losing their jobs a range of options, from individual re-employment support and re-training to making investments to promote innovation and working with a variety of partners to create new opportunities," Elop said.
While Nokia may call this move its plan to “align its global workforce and consolidate site operations,” in reality this move will have a major effect on thousands of people whose jobs will be lost and as Nokia builds up to releasing the first Windows Phone device, there could be more redundancies in the pipe-line.