Just like most corporations, Nokia is tackling the economic downturn primarily by cutting costs. The company is applying three methods; layoff of employees, reducing purchases from contractors, and offering voluntary retirement packages. This is the first time Nokia has offered attractive retirement packages for managers and other knowledge-workers in larger scale.

The first round of packages that was available to 1000 senior-level employees in Finland was so badly wanted that many who hesitated too long, didn't get it. Those who used the opportunity to cash out, received an equivalent of 6 to 15 months salary, depending on the length of their Nokia careers. In May 2009, Nokia employees at the Salo factory were keen to get the packages as well and pushed the top management to offer the scheme to factory workers. It was an instant success, too.

The strategy to let employees decide if they want to go or stay can be regarded a success. Naturally, Nokia will lose talent it didn't want to lose, but that's a small price to pay for the good will and positive brand image created during tough times. Besides, Nokia is still one of the most wanted employees in the world and young talent is continuously queuing up outside the company's door to get ...

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