A few days after consultative talks at Renesas Mobile’s development unit ended, the worst fears of the company’s Finnish employees were realised. Heikki Tenhunen, CEO of Renesas Mobile Corporation Europe, announced that the company is laying off all 808 workers in Oulu, Salo, Helsinki and Tampere. The first dismissal notices will be handed out next week.
Most of the unit’s workers are in Oulu, where 566 are now set to lose their jobs. Some 94 jobs will be cut in Salo, 82 in Helsinki, and 66 in Tampere. Employees at all locales were invited to a briefing about the situation on Thursday morning.
The Japanese parent company of Renesas Mobile Corporation has been looking for a buyer for the mobile unit, which develops microchips for wireless communications. The unit started consultative talks in March.
Another blow to Oulu’s IT-sector
The lay-offs are another serious blow to Oulu, northern Finland's largest city, which has lost nearly 3,000 jobs in the IT sector in the past few years.
Renesas Mobile Corporation Oulu shop steward Lauri Louhivirta said employees were extremely disappointed at the outcome of the consultative talks. Louhivirta also expressed concern over the future of the IT business in Oulu.
“The ‘Oulu miracle’ is being chipped away. Nokia Siemens Networks is nearly the only big company left in the sector in Oulu,” Louhivirta commented after the briefing.