Nokia finalizes Siemens Network acquisition, might cut 8500 jobs

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.

source: Nokia, Bloomberg

Thumbnail images courtesy of Henrik Kettunen/Bloomberg.

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