Nokia Siemens and German Union agree on job cut, St.-Martin-Strasse site to be shut

Telecom Lead Europe: Nokia Siemens Networks has reached an agreement with German unions to cut 1,600 jobs in Munich.
The job cut is part of the telecom equipment maker’s ongoing transformation program, which includes 17,000 job losses globally.

Nokia Siemens plans to cut 1,300 jobs at its other sites in Germany to reach the 2,900 cut target for the country. The agreement will be valid for three years.

Nokia Siemens would keep its German headquarters in Munich and continue to employ around 2,000 people there.

For the remaining 1,600 employees in Munich, alternative solutions would be found, including part-time contracts for those who are approaching the age of retirement.

Under the proposal, the St.-Martin-Strasse site, which currently hosts 3,600 employees, would be closed as initially planned.
IG Metall’s proposal would enable us to achieve our restructuring objectives for Germany ahead of schedule and would guarantee planning reliability. This makes economic sense and provides justification for Munich to remain a significant location for Nokia Siemens Networks. Furthermore the company will provide clarity to the affected employees earlier than first planned,” said Herbert Merz, chairman of the Supervisory Board of Nokia Siemens Networks.

In January 2012, Nokia Siemens said its intention to cut approximately 2,900 of its then approximately 9,100 jobs in Germany. This goal remains unchanged.

The company plans to concentrate its German operations in five locations and to close all further sites, including Munich. The new proposal, however, would see the company also remaining in Munich.

Nokia Siemens cuts 3,500 more jobs in Brazil telecom market

Recently, Nokia Siemens cut 3,500 new jobs as the company ended a service deal with Oi in Brazil. The decision to reduce 3,500 jobs is in addition to 17,000 already announced. The plan to reduce jobs will assist the mobile infrastructure company to reduce costs further.

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