Nokia decided to cut costs and moved a factory located in Germany to Romania leaving 3500 people in Germany without a job. Nokia also cut more costs and outsourced 1400 of its employees to company called Accenture. This employee separation and poor exit management resulted that many of those transferred employees left the new company after bad experiences. Employee separation can also be very expensive for the company.

Photo; Retention and separation. Aly_ayk. URL: https://www.slideshare.net/aly_ayk/retention-and-separation Accessed 11.5.2017

High cost for compensation involve benefits like separation pay and insurance costs. When employee is leaving company it also adds workload for other employees because leaving employee is often interviewed to know the reasons why the employee is leaving the company.


(Yle uutiset 2012) Hundreds of Nokia’s outsourced Symbian developers leaving Accenture. URL: http://yle.fi/uutiset/osasto/news/hundreds_of_nokias_outsourced_symbian_developers_leaving_accenture/5252177 Accessed 11.05.2017

Nokia closes plant in Germany and relocates in romania. URL: https://communicatinglabourrights.wordpress.com/2008/01/17/nokia-closes-plant-in-germany-and-relocates-in-romania/ Accessed 11.05.2017

Nokia cuts 3500 jobs “to ensure profitability”. Yle 2011. URL: http://yle.fi/uutiset/osasto/news/nokia_cuts_3500_jobs_to_ensure_profitability/5431070 Accessed 11.05.2017

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