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FINLAND: Nokia makes cuts in local workforce by the end of 2017

posted onJune 28, 2017

Telecom network equipment manufacturer Nokia announced that has completed lay-off talks in Finland and will as a result cut 170 jobs. According to the company, three-quarters of the cuts will be made across its business divisions and support functions in Espoo, Finland's second largest city, where the company is headquartered and the remaining one-quarter in Oulu, a Finnish city considered one of Europe's "living labs", where residents experiment with new technology at a community-wide scale and Tampere, dubbed the "Manchester of Finland" for its industrial past  – the majority by the end of 2017.

Nokia, which was born in 1865 and revolutionized the world of communication by building the first international mobile phone network in 1981, currently has 6,100 employees in Finland and around 101,000 globally.

In 2016, the company cut 960 jobs in its home market and also said it would do away with 1,400 positions in Germany.

Following its 2016 acquisition of French telecommunications equipment company  Alcatel-Lucent, Nokia cut more than 10% of its workforce, which equates to what experts estimate to be around 11,000 positions, including about 1,000 in its home country of Finland. The reductions were part of a 1.2 billion euro global cost-savings plan scheduled to be completed at the end of 2018.

“In order to succeed in this market environment, we must continue to streamline our cost structure and increase our efficiency,” Tommi Uitto, the country director for Nokia Networks Finland stated in a press release in May.

“Nokia’s roots are in Finland – as are our head office and three important research and development units – and we will continue investing in Finland. The planned measures are difficult but necessary to secure our competitiveness and foster our innovation leadership also in the future,” he added.

Nokia, which competes with Sweden's Ericsson and China's Huawei has slashed thousands of jobs over the past decade in Finland.