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Nokia chops and changes for cost-efficiency

Site closures, 'temporary lay-offs'

Nokia will close its Jyväskylä product-development site by the end of 2009, and scale back its Salo site - a shame for those who got relocated there in the last round of cuts.

Jyväskylä employs 320 people, all of whom will be affected by the closure, while the Salo site - to which staff laid off from Turku were relocated in November - will lose more than 500 of the 2,500 employees though a process of "temporary lay-offs" that will enable Nokia to scale back production at the site.

Those 500 staff won't lose their jobs, just be put out to pasture on a rotational basis that will include all staff at the site, in a process that Nokia tells us is "common practice" in Finland.

The Finnish giant is spinning this as "increased efficiency", but admits that it isn't shifting as many handsets as it used to. This is all part of a plan to spend more time developing fewer products in the future - which is why it can cut so many research and development people as well as marketing bods. ®

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