Finland Times

 

Microsoft Finland's headquarters in Espoo on Wednesday. Microsoft on Wednesday announced to cut 7800 jobs. Photo Lehtikuva.

In its latest move to downsize mobile phone operations in Finland, Microsoft will dismiss 2,300 employees in the Nordic country, news agency Xinhua reported quoting Finnish media.

 

Microsoft is pulling out completely from the southwestern Finnish town of Salo, which was the birthplace of the boom of Finnish mobile phone industry in 1990s.

 

While the operation in Salo will be shut down, the unit in Espoo near Helsinki will concentrate on high end phones, applications and design.

 

Medium priced phones would be designed in Tampere, central Finland. A unit for low end mobile phones would continue in Beijing, China, with reduced manpower.

 

The latest cutbacks will reduce the total number of Microsoft employees in Finland by about two thirds from the present level of 3,200 persons. The US-based software giant bought the mobile business from Nokia for 5.4 billion euros in 2013.

 

The job cuts in Finland is part of Microsoft world-wide cost saving measures and the company will lay off up to 7,800 employees mainly from its phone business and related operations, reported news agency STT.

 

Under Finnish law, dismissals can only be implemented after talks with the personnel.

 

Reacting to the layoff plan on Wednesday, the Finnish government said the "world class Finnish know-how" can now be used in several sectors of digitalisation. The government listed health technology, intelligent transport and auto-technologies as upcoming possibilities.

 

The area of Salo will get additional assistance to help in the situation. Production of mobile phones in Salo has ceased during the Nokia era itself.

 

Salo city mayor Antti Rantakokko talked to journalist after the announcement of job cut on Wednesday. Photo Lehtikuva.

Meanwhile, the government has expressed disappointment over the Microsoft's decision to terminate the contract of 2,300 employees in Finland. 

 

The Ministerial Committee on Economic Policy had a special meeting today due to the situation, said an official press release.

 

The government is prepared to submit to Parliament, immediately when the autumn term begins in September, a supplementary budget targeted specifically on measures supporting the situation. 

 

Together with Microsoft, the government will weigh out measures to support start-ups by individuals who are currently subject to the threat of redundancy. In addition, the Ministry of Employment and the Economy will prepare an application to the European Globalisation Adjustment Fund.

 

The government encourages the actors in the area to cooperate and the companies to take bold steps in utilising digitalisation. The ICT structural change will also give an opportunity to create new competitive business activity and new jobs. 

 

The government will support the re-employment of terminated individuals and the regions affected by structural change, especially the Salo region which will suffer most severely.

 

Loss of so many jobs is very sad for the whole society and for individuals affected. It is, however, positive that Microsoft has promised to bear its corporate social responsibility beyond the level required by law, said the press release.