NOKIA, the world’s leading mobile phone maker is planning to slash 1,700 jobs globally over the coming few months. This is a part of Cost cutting measures because of decline in the demand curve for the phone market. The company had about 128,445 employees at the end of 2008. Nokia is offering severance packages to the first 1,000 employees volunteering to leave the company. This should cut production in the key Salo plant in Finland. In January, Nokia warned possible major cost-cutting measures after its fourth-quarter net profit crashed by 70 percent to euro576 million ($744 million). In this regard Nokia said: “All of these measures are part of Nokia’s previously announced plans to adjust business operations and cost base in accordance with market demand and to safeguard future competitiveness”.  As the Sales of mobile phones have been severely affected by the economic downturn these kind of layoffs due to recession are going to reverberate throughout our economy and society for a long time. Moreover the sales are expected to reduce by a further 14% this year according to analysts.

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