By Christina Zander
STOCKHOLM--Finland's government said it will step in and support
the country's approximate 2,300 Microsoft employees that are
affected by the software giant's latest round of global
layoffs.
Microsoft Wednesday announced it will reduce its global payroll
by 7,800 workers--mostly in its mobile phone operation. The
announcement came a year after a restructuring that cut 18,000
jobs.
The U.S. company bought Finnish firm Nokia's (NOK) mobile
business last year, turning it into Microsoft Mobile as part of its
ongoing plan to become more competitive in the global mobile
market, a strategy which has so far been unsuccessful. Microsoft
said Wednesday that it is writing down about 80% of the $9.4
billion deal for Nokia's handset business.
The Finnish government said in a statement that it was
disappointed with Microsoft's decision and that it was prepared to
submit a supplementary budget targeted specifically at measures
supporting the situation.
"The loss of so many jobs is very sad for the whole society and
for the individuals affected," the statement said.
Proposed measures include government support for start-ups
launched by those under threat of redundancy, as well as applying
to the European Globalization Adjustment Fund, which provides
advice and training to laid-off workers.
Finland is trying to recover from a three-year-long recession.
The Nordic country's jobless rate has risen to 11.8% in May,
according to the Statistics Finland institution, as mainstay
industries such as mobile phone handset making and paper have
declined sharply.
About 66% of the 3,500 employees in Microsoft Mobile will have
to leave the company. The cuts come on top of an earlier reduction
of 1,000 workers in Microsoft's last round of restructuring.
Kalle Kiili, a representative of the Union of Professional
Engineers in Finland, said it was "a black day" for Finland and
Salo--the town in the southwest of the country where Microsoft's
operations will cease completely.
Write to Christina Zander at christina.zander@wsj.com
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