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UK’s Carphone Warehouse To Slash 400 Jobs; Nokia Agrees To Shorter Layoff Time

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More layoffs as the industry tries to grapple with waning consumer demand for mobile phones. The UK’s mobile phone retailing giant Carphone Warehouse is expected to cut around 400 jobs mainly among its support staff as part of its cost savings drive it outlined in January, according to the Guardian.co.uk, which did not cite a source. Call centre workers are another likely target, many of whom were hired two years ago to beef up customer support at its TalkTalk unit that was overwhelmed by customer demand—and complaints—after Carphone launched a free broadband offering. Since then, demand has subsided, with CEO Charles Dunstone describing the business as “subdued.”

SEE ALSO: Nokia Culls Jobs, Slashes Production As Handset Sales Slow

Carphone Warehouse has 2,400 stores in nine countries and some 21,400 workers, with just over a half of them in the UK. Retail store staff are not expected to be affected.

Meanwhile, Nokia (NYSE: NOK) has worked out a plan for shorter-than-expected temporary layoffs in 2009 at its Salon plant in Finland, responsible for turning out the handset maker’s smartphones, Reuters reports. The layoffs will last on average five weeks, and depending on the units, could vary from 3 to 7 weeks. Earlier this month, the handset maker said it would lay off all of the plant’s 2,500 workers on a rotational basis for up to 12 weeks as part of its plan to cut costs in its handset unit by more than 700 million euros ($892 million).

Feb 26, 2009 5:45 AM ET

Posted In: Gadgets, Jobs & Layoffs, Companies, Nokia, Countries, Europe, UK, carphone warehouse, layoffs

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