Nokia, Siemens part ways on joint venture: 8,500 job losses expected

Nokia, Siemens part ways on joint venture: 8,500 job losses expected

Summary: The telecoms equipment making joint venture comes to an end as Siemens completes its 50 percent stake sale. Nokia may as a result lose as much as 17 percent of its workforce.

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TOPICS: Nokia, Telcos
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NSN becomes NSN. So little change there, as the Nokia-Siemens era closes and Nokia's wholly-owned regime sets in at the mobile broadband giant.

Nokia Siemens Networks formally announced on Wednesday it became Nokia Solutions and Networks, after its telecommunications partner for more than a decade Siemens sold its 50 percent stake in the venture, worth €1.7 billion ($2.2bn).

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Nokia to buy out Siemens stake in joint venture for $2.2B

Nokia to buy out Siemens stake in joint venture for $2.2B

The joint venture will become wholly-owned by Nokia, the Finnish phone maker announced on Monday, despite struggling with its own financial situation.

In a statement, chief executive Rajeev Suri will stay on as the company's chief and chairman. The firm also reiterated its commitment to the mobile broadband space, noting that it will continue with its turnaround strategy, that has been in force since November 2011.

While the phone maker holds on to its telco equipment-making arm, which continues to generate profit despite its parent company's financial decline, one report suggests the newly founded company may not keep all of its workforce.

Bloomberg said not long after the NSN name-change announcement that as many as 8,500 jobs could be cut by the end of 2014, representing about 17 percent of its total workforce.

This will be achieved by reducing its overall number of plants and factories, particularly those in Finland where Nokia is based, as well as India and China where the company produces many of its components — although no plans firms have been made by Nokia yet.

A Nokia spokesperson declined to comment in an email to ZDNet.

Topics: Nokia, Telcos

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2 comments
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  • Something about Rats, and sinking ships comes to mind

    As the SS Nokia starts to sink, everyone's looking for a way to get off the decks.
    Troll Hunter J
    • I doubt that MS will let Nokia sink

      as it controls 80% of the Windows Phone market. MS has almost no share as it stands and certainly it cannot afford to lose 80% of that market.
      Wakemewhentrollsgone