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Nokia Layoffs To Be Part Of Company-Wide Shakeup

Nokia Layoffs

Posted: 01/31/2012 6:31 am


(Reuters) - Nokia Siemens Networks, the world's second-largest maker of mobile phone network equipment, is talking to labor unions in its home countries Germany and Finland about cutting more than 4,000 jobs, part of a company-wide shakeup.

Nokia Siemens said it aims to cut 2,900 jobs in Germany and 1,200 in Finland as part of its massive restructuring program, which aims to cut nearly a quarter of its workforce and to save about 1 billion euros ($1.31 billion) a year.

Nokia Siemens, which has struggled to make a profit since being set up in 2007, was formed by Nokia and Siemens in the hope of building enough scale to lead an industry dominated by Swedish company Ericsson and, increasingly, by Chinese entrants.

It has faced aggressive pricing from rivals and an economic downturn that has forced telecoms companies to cut spending.

($1 = 0.7625 euros)

(Reporting By Tarmo Virki and Irene Preisinger; Editing by Erica Billingham)

Copyright 2012 Thomson Reuters. Click for Restrictions.

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