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Nokia seeks voluntary resignations as sales plummet

Battered by the global recession, Finnish mobile phone giant Nokia is seeking voluntary resignations from staff as it struggles to adjust to decreased demand for its products and services.

The news from the Espoo, Finland-based company comes on the heels of Nokia's announced intentions to reshape its operations and cost structure to meet market realities and yet stay competitive.

"The response from employees and employee representatives in proposing ideas to help reduce personnel-related costs has been encouraging," said Hallstein Moerk, head of human resources at Nokia, in a statement.

"We have considered these and are now announcing voluntary initiatives that could contribute to our efforts to adjust our cost base to the current market environment," he said.

Nokia is the world's largest manufacturer of mobile phones.

But the company's sales have lagged rivals in the United States, the market with the fastest-growth potential for mobile marketing, content and commerce.

The company's Voluntary Resignation Package, as it is styled, is available to employees worldwide, bar direct labor and senior executives. All terms and conditions are in line with local practices and legislation, Nokia said.

Nokia employees have from March 1 to May 31 to apply for the package. The deal will end once 1,000 employees have applied.

In addition to the resignation package, Nokia is granting short-term unpaid leaves and sabbaticals of one month where operations are not disrupted.

The company is also encouraging employees to take their vacation days as time off, and not as paid days.

"If successful, the voluntary initiatives will lessen the need for involuntary redundancies," Mr. Moerk said in the statement.