Finland has strong unions and laws protecting workers, but it doesn't prevent reassignments or define assignments of engineers inside companies. It only defines some rules like working hours, how overtime is compensated, annual increases on salaries (yep, it's funny that even during recession unions demand raises...) and makes firing someone a bit difficult.

Nokia handles lay offs in two ways - first by offering support packages for those who resign willingly (buying them out), and if needed, by setting up "negotiations" about how many people will be laid off. These "negotiations" are mandatory by law and they are supposed to be an opportunity for workers and the company to find ways to prevent lay offs. Something like relocations, reassignments etc. If you get fired, company cannot hire someone else to similar position in some time, unless you get the opportunity to return to work. If workers feel that they are being treated unfairly, it sometimes prompts strikes, especially during contract negotiations between unions... However, salaries are so low in Finland that Nokia gets talented engineers at cheap price, so it kind of compensates for tight union regulations. Anyway, it doesn't explain decisions regarding resources on development of Maemo or Symbian.