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Nokia finalizes Siemens Network acquisition, might cut 8500 jobs

Posted: , by Victor H.

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Nokia finalizes Siemens Network acquisition, might cut 8500 jobs
After officially announcing it will fully acquire the Nokia Siemens Network, buying out Siemens’ share, Nokia has now confirmed it has finalized the deal and it is now the sole owner of the NSN. Today, Nokia is also renaming the division to Nokia Solutions and Networks, retaining the familiar NSN abbreviation, but with a different meaning.

Nokia paid 1.7 billion euro (around $2.3 billion) in order to get full ownership of the Nokia Siemens Network, one of the largest network equipments providers globally. NSN is the only profitable part of Nokia group. After completing it, Nokia now has full access to Nokia Siemens money.

After the acquisitions, rumors surfaced that Nokia plans on cutting a whopping 8500 jobs in ‘optimizations’ designed to boost profitability. NSN employs 50 500 people across the globe at the end of June and that number might drop to 42 000, a massive 17% cut. Sales of NSN facilities in Finland, India and China are also under consideration. None of those decisions is final, though, but judging from the more than 20 000 slashed jobs, more cuts are coming as Ericsson and Huawei are getting more competitive in network equipment.

+- Press Release

source: Nokia, Bloomberg

Thumbnail images courtesy of Henrik Kettunen/Bloomberg.

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posted on 07 Aug 2013, 09:17 1

1. akki20892 (Posts: 3902; Member since: 04 Feb 2013)

that's what happen in dark time, but time will come with shine for Nokia for sure like they had with Symbian.

posted on 07 Aug 2013, 09:19

2. sri_tech (Posts: 188; Member since: 21 May 2013)

I know how hard it is for the people who lost their jobs.
I hope Nokia and NSN can pull it off so that remaining people will be able to keep their jobs.

All the best Nokia.

posted on 07 Aug 2013, 09:22 2

3. great (Posts: 85; Member since: 21 Jan 2013)

you can't just exploit 8500 families whose livelihood depends on it ! thats bullcrap nokia .....

posted on 07 Aug 2013, 09:27 8

4. sri_tech (Posts: 188; Member since: 21 May 2013)

Thats what every company do when they are in difficult situation.

Even Google fired more than 4K Motorola employees after purchasing it. Google is in a position to keep them because of they have lots of money. But they didn't.

Nokia is not in a position to do that. I am not criticizing Google for that. Because thats what every company does.

I hope those people find jobs in some other companies.

posted on 07 Aug 2013, 11:52

6. DontHateOnS60 (Posts: 872; Member since: 20 Apr 2009)

Just because Google has the money to keep them doesn't mean it's a sound investment to have them, and that's ultimately why they got axed. Why have two people doing the same exact job when you only need 1? It's unfortunate, but I'd let them go too if they weren't necessary.

posted on 08 Aug 2013, 00:37

7. Reluctant_Human (Posts: 904; Member since: 28 Jun 2012)

Just because Google did it doesn't make it right. Anytime someone has to lose their job not due incompetence or laziness it sucks it pissed me off. It's a poor sign of management and CEOs no matter what company or sector. Sadly in the world we live in they could fire less than 100 people that were actually responsible for the company doing badly and still save the same amount of money or at least give the employees an option of a temporary pay cut / stock options for part of the salary.

What annoys me about this Nokia story is the fact that they are firing from "the only profitable part of Nokia group."

posted on 07 Aug 2013, 11:50

5. DontHateOnS60 (Posts: 872; Member since: 20 Apr 2009)

Do you have any conception of how a company is run? There is minimal room for compassion at any company and that's just a fact of life because the main priority is to keep the company up and running and profitable. You can't keep something running that's bleeding cash. That's how you end up like Greece.

posted on 08 Aug 2013, 08:08

8. 7thspaceman (Posts: 1583; Member since: 14 Feb 2011)

This could open the way for Microsoft to finally buy Nokia when Microsoft last bid on Nokia they had to buy Siemen's share of Nokia too. That could have caused them problems. Now that Nokia is separated from Siemens. that is no longer the case Microsoft can buy Nokia and it's
Profitable parts it got from Siemens. Then again now Nokia may be cost too much for Microsoft to buy!

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