Nokia Siemens to cut 1,820 jobs

12 November 2008

Telecom gear maker Nokia Siemens Networks will cut around 1,820 jobs, mostly in Finland and Germany, as the last phase of a planned 2 billion euro ($2.58 billion) cost-cutting programme.

Nokia Siemens said it will now start the process of sharing preliminary plans with employees and employee representatives in Finland and Germany. Actual reductions will occur only after the completion of appropriate consultation processes and in accordance with local legal practices, it added.

The announcement comes a day after Canada's Nortel said it would axe 1,300 jobs amidst fierce market competition, subdued demand and falling prices.

Nokia Siemens Networks, the 50:50 joint venture between Finland's Nokia and Germany-based Siemens, had proposed to cut around 10-15 per cent of its workforce at the time of its merger, in June 2006.

The company last year confirmed that the job cuts were expected to be within range, at approximately 9,000 and has so far achieved an adjustment/cut of more than 6,000 employees.

Nokia Siemens said the proposed merger-related adjustments stem from changes to the product portfolio, site optimisation, streamlining of various functions, strategic, long-term R&D and workforce balancing and other factors designed to build a competitive Nokia Siemens Networks.