At the beginning of 2007, Nokia streamlined its operations in some of its R&D and related sales and marketing activities and internal IT operations. This resulted in a need to adjust the workforce, affecting 700 employees globally. Through successful redeployment and voluntary arrangements, very small fractions were made redundant. In our biggest country, Finland, where 340 employees were affected, in terms of number of personnel, no one was made redundant.

In June 2007, Nokia announced it would reorganize the business into three main units: Devices, Services & Software, and Markets. The integrated company structure was planned to allow Nokia to adapt the way we manage our portfolio of products and services to reflect the opportunities being created through the convergence of mobile technology and the internet.

The new organization was designed layer by layer, enabling wide participation in the detailed planning. New positions were created and open to applicants. The majority of employees continued with their previous roles but in new units and teams, while some moved to new roles.

Nokia engaged employee representatives in discussions in accordance to applicable practices and communicated changes to employees in good time before changes were implemented. During the reorganization, employees were kept informed throughout the six month transition with weekly updates and various information sharing sessions.

The formation of Nokia Siemens Networks (NSN) was announced already in June of 2006. However, due to regulatory issues and approvals the actual transfer of the employees took place in the majority of countries only in April of 2007. As a result of the formation of NSN more than 20 000 employees transferred from Nokia to the new company, a vast majority from the previous Nokia Networks business with some support activities coming from corporate functions. To continuously support the fluidity of talent between the two companies, Nokia and NSN have also created detailed transfer guidelines.