Nokia to Impose Strict Cost Control Measures by Streamlining Operations

Nokia is continuing its drive to increase cost-efficiency and adapt to the current market situation with its recent announcement that it plans to increase cost-efficiency to adapt to the tough economic conditions. As per the latest announcement, the company said it is focusing on streamlining the process and reducing costs in its Devices and Markets units as well as in its corporate development office and global support functions.

This is keeping in line with the company’s ongoing efforts to reduce costs as far as possible and come out with new measures which help them to increase cost-efficiency and adapt to the challenging market environment which has been brought about by the recession.              

The company has plans to scale sales, marketing and technology management to match the pruned portfolio and global consumer demand. The new action plans aims at addressing marketing and other activities which will no longer be integral following their Symbian acquisition. It will also look at streamlining the Devices R&D organization and in increasing efficiency in certain global support functions.

All these new plans are part of Nokia's (News - Alert) previously announced agenda to adjust business operations and cost base in accordance with current market demand and to safeguard future competitiveness.  A few weeks back, the company had also announced a plan for voluntary personnel initiatives, introducing voluntary resignation package and encouraging sabbaticals for all of its employees.

When these plans get implemented, it will affect approximately 1,700 employees on a global scale. Wherever it is necessary, Nokia said it will also start consultations with employee representatives about these plans and their consequences.

The company is also encouraging its employees to take holiday as time off instead of cashing in their leave for 2009. This new Voluntary Resignation Package will be open for application from the 1st of March until 1,000 employees have applied, and will close on the 31st of May, 2009 (latest).