Nokia - the leading mobile phone manufacturing company in the World has decided to cut off its jobs. This step has been taken to further reduce costs amid the global economic downturn. However, it is announced from Nokia official that they will open a global voluntary resignation package on March 1, and plans to increase short-term unpaid leaves and sabbaticals.
It also appealed to employees to accept holiday time as payments, instead of cash, for overtime work in 2009.
Nokia described as "encouraging" the response from employees and unions in proposing ideas to help reduce personnel-related costs.
Hallstein Moerk, head of the company's human resources said that "We have considered these and are now announcing voluntary initiatives that could contribute to our efforts to adjust our cost base to the current market environment". "If successful, the voluntary initiatives will lessen the need for involuntary redundancies."
Nokia said it will accept applications for the resignation package until May 31, or when 1,000 employees have applied.
The announcements came after the company last month warned of cost-cutting measures after its fourth-quarter net profit crashed 69 percent to euro576 million ($744 million). It also lost market share - which fell to 37 percent from 38 percent in the previous quarter and 40 percent in the fourth quarter of 2007.
Last year, Nokia remained the No.1 cell phone maker selling 468 million handsets, up 7 percent on 2008. But its net profit plunged 42 percent to euro4 billion, while sales decreased 1 percent to euro51 billion.
