Nokia Siemens to close German services unit: report

Nokia Siemens to close German services unit: report

Summary: According to reports, Nokia Siemens Networks will be trimming down its services to cut down costs.

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TOPICS: Nokia
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Nokia Siemens Networks may be closing its German services unit amid company restructuring efforts.

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The joint Nokia-Siemens venture will apparently lose its German services unit by the end of 2013, which places roughly 1,000 jobs at risk, according to Reuters.

Two anonymous sources familiar with the matter told the publication that the cost-cutting exercise will be officially announced Wednesday, when workers at the unit will be told a lifeline contract with Deutsche Telekom will not be renewed.

Deutsche Telekom's contract with NSN, worth 300 million euros, began when the services unit was sold to Nokia Siemens five years ago. However, once the contract expires, the mobile telecoms equipment maker plans to use the savings to eventually reach a goal of roughly 1 billion euros ($1.31 billion) in cost-cutting by the end of 2013.

Verdi union representative Mike Doeding told the news agency that closing the unit "would be an outrage."

Yesterday, Nokia Siemens Networks announced plans to sell its Optical Networks business to Marlin Equity Partners in order to focus on mobile broadband and core restructuring efforts. Marlin Equity Partners plans to make the Optical Networks business an independent new company with the goal of "becoming a leading provider in the optical market."

Topic: Nokia

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