Nokia Siemens Networks to 'axe 8,500 jobs' amid biz gobble
Siemens sells NSN share to Nokia, sales slide sparks staff cuts fears
Comms hardware maker Nokia Siemens Networks is reportedly planning to lay off as many as 8,500 staff to ratchet up profits as sales slump.
Nokia announced today that it had completed the acquisition of Siemens' stake in Nokia Siemens Networks, and rebranded the subsidiary Nokia Solutions and Networks (NSN).
The deal was announced last month and cost Nokia €1.2bn in cash plus a half-a-billion loan, putting the Finnish firm in sole control of the infrastructure business.
However, sources told Bloomberg that the buyout would be accompanied by job losses, which could bring the subsidiary's workforce down from 50,500 workers to 42,000.
These cuts would be achieved by selling or shutting plants, with facilities in Finland, India and China rumoured to be earmarked for closure. However, Nokia has not yet announced the job cuts or any closure plans.
NSN is also said to be contemplating the sale of a €500m bond to pay for a dividend payment to Nokia totaling around €900m.
An NSN spokesman said: "With our ownership change and rebranding as NSN, it’s not surprising that there’ll be all manner of conjecture about our plans."
Nokia has axed about 20,000 staffers over the past couple of years. Overall revenue slumped 24 per cent year on year to €5.7bn in the latest quarter, which ended 30 June. Revenue from phone sales has also plummeted by 32 per cent on last year's figures, meaning the group made an operating loss of €115m.
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