By Telecom Lead Team: Mobile broadband major Nokia
Siemens Networks has 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.
Most of the employees involved have left the company,
according to Ben Roome, a spokesman for Nokia Siemens.
Nokia Siemens Networks to cut 17,000 jobs by 2013 from present
74,000
The decision announced in November 2011 to reduce 17,000
jobs is part of the company’s restructuring plans in order to save operational
expenditure. As per the restructuring, Nokia Siemens will focus on mobile
broadband and services business. It will also look at divesting businesses
which are not viable.
According to a Reuters report, Nokia Siemens announced a
five-year field maintenance deal with Oi, the telephone services brand of
Telemar Norte Leste, in 2009, taking on about 3,000 Oi and third-party employees.
The exit contributes to its focus and cost- reduction
plans. It doesn’t affect the company’s Sao Paulo global network operations
center.
Motorola acquisition pushed Nokia Siemens to cut 17,000 jobs in
next 2 years
The $975 million cash deal to buy Motorola Solutions’
Networks assets is one of the reasons for Nokia Siemens Networks to axe 17,000
jobs in the next two years.
The Motorola acquisition has brought in 6,900 people to
Nokia Siemens Networks. In 2009, Nokia Siemens Networks’ manpower stood at
63,927. Its manpower increased to 66,160 in 2010, growing at 3 percent and
around 74,000 in 2011.
Also, the cash deal prompted Nokia Siemens Networks to
report substantial increase in research and development expenses.
In Q3 2011, Nokia Siemens Networks’ research and
development expenses increased 18 percent year-on-year and 4 percent
sequentially, primarily due to the addition of R&D operations relating to
the acquired Motorola Solutions networks assets as well as investments in
strategic initiatives.
Nokia Siemens Networks’ administrative and general
expenses in Q3 2011 increased 16 percent year-on-year, reflecting the higher
net sales and the addition of Motorola Solutions’ network assets. Sequentially,
Nokia Siemens Networks administrative and general expenses were virtually flat.
Recently, Nokia Siemens CEO announced that the company
will continue divesting more non-core portfolios.
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