Feeds

Nokia offers 'voluntary retirement' to 6,000+ Indian employees

India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears

Build a business case: developing custom apps

Nokia has decided to allow an unspecified number of employees at its massive Chennai plant take voluntary retirement (VRS), as it battles local tax authorities and an April 30 deadline for transferring the factory to Microsoft.

The Finnish handset maker issued the following statement on Friday, seen by PTI:

As a global company, Nokia regularly reviews its manufacturing strategy to optimise and ensure smooth and timely delivery of its products. This process considers many factors, including the predictability and stability of the regulatory environment in the countries where the company operates.

Following such a review, we can confirm we have launched a voluntary package (VRS) at our Chennai, India facility.

Further complicating matters, the Indian government in March demanded Nokia pay Rs.35 billion ($572.5m, £342.4m) as a guarantee for tax it says the ailing smartphone maker owes.

Although Nokia has not agreed to this demand as yet, failure to do so would likely render it unable to hand over the Chennai plant to Microsoft before an end-of-April deadline which is part of its M&A deal with Redmond.

The factory has over 6,000 employees, making it one of Nokia’s largest global facilities. It is not, however, one of Nokia's happiest: around 2,000 staff went on a one-day hunger strike two weeks ago to demand greater job security.

It doesn’t look like those efforts were fruitful.

Nokia hasn’t put a number on how many staff it’s looking to offload via VRS, claiming “all employees coming forward are entitled to the package”.

“As a responsible employer, Nokia is offering a clear financial option for interested factory employees,” it added. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?