Finland Government Steps In to Help Laid-Off Microsoft Workers

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 [e-mail]

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