The France-based General Confederation of Labour (CGT) has accused the brand of attempting to improve profitability by shifting work to countries with labour costs lower than France
The aim of the layoffs, as reported by the news agency, is to focus on making operations more efficient. It is to be noted here that Nokia has just completed the consolidation after the purchase of the French Alcatel-Lucent.
Tommi Uitto, director, Nokia operation, Finland, referred to the changes as “necessary.” Nokia had also announced its plans to save 700-million-euro (about 798.7 million U.S. dollars) in October 2018. Marc Rouanne, one of the key directors in Nokia leadership, had left the company afterwards.
Nokia accused by General Confederation of Labour in France
The France-based General Confederation of Labour (CGT) has accused the brand of attempting to improve profitability by shifting work to countries with labour costs lower than France. Finnish daily Helsingin Sanomat has quoted the union saying that Nokia has broken its 2016 promise. The promise made to the then Finance Minister Emmanuel Macron by Nokia, as per the union, included keeping the Alcatel-Lucent and Bell Labs workforce at 4,200 for two years.
CGT also claimed that Nokia has also broken its promise of employing 2,500 new people in research and development. Petri Sajari, Helsingin Sanomat economics writer, said that the French unions could turn the Nokia layoffs against President Macron.
Nokia currently employs 100,000 people worldwide.