Nokia to Cut 17,000 Jobs Worldwide

Nokia Siemens Network

Nokia Siemens Network

.What’s Nokia Siemens Networks doing?

Nokia Siemens was originally formed to compete against Swedish firm Ericsson and burgeoning Chinese companies like Huawei. Upon this announcement of worldwide cuts of Nokia Siemens jobs, the conglomerate said that its shifting its strategies and will target end-to-end mobile network infrastructure and services, with a particular emphasis on mobile broadband. Nokia Siemens operates in more than 150 countries worldwide and currently has about 73,000 employees. It’s unknown where most of the cuts of these 17,000 Nokia Siemens jobs will take place, although it was announced as late as yesterday that Australia and New Zealand were in the mix. Nokia itself has cut more then 10,000 jobs this year, including site closures in many countries.

Nokia Siemens Networks Has Been Struggling

Nokia Siemens received a cash injection of 1 billion euros from its parent companies in September, and at the time, it was thought that Nokia Siemens would not need any more funding. However, Nokia Siemens has been unprofitable in all but one quarter. This past quarter, Nokia Siemens posted a third-quarter operating loss of 144 million euro, in line with a loss of 116 million euro a year earlier, though sales rose 16% year on year. Nokia Siemens had a 13.2 percent market share in 2010, tied with Alcatel-Lucent for third place in the mobile infrastructure market. The company also generated sales of about $254,000 per employee last year, 19 percent less than Ericsson. The cut of Nokia Siemens jobs is part of plan to reduce operation costs and, hopefully, to remain competitive in the mobile technology industry. In order to reduce those costs, Nokia Siemens will begin to outsource services and undergo a reduction of suppliers.

Nokia Siemens Networks and its Assets

Nokia Siemens acquired Motorola Solutions units this year, and Nokia Siemens plans to cut as many as 1500 jobs from its Motorola units. This acquisition of the wireless-network equipment division of Motorola started in 2010 for US $975 million in cash, and wasn’t completed until April of this year. Nokia Siemens also sold its microwave transport division to Canada wireless equipment firm DragonWave earlier this month. The division was purchased for 10 million euro in cash and 5 million euro in shares.

It’s still too early to tell what these job cuts will mean, since it’s almost unknown where these Nokia Siemens job cuts will specifically take place. These job cuts are also expected to take place over the course of the next 12 months as executives take the time to determine where it would be most beneficially to cut these Nokia Siemens jobs. Nokia Siemens has struggled to profit throughout the global economic downturn, and we might see more of the same with these worldwide job cuts.

Photo Source: washingtonpost.com

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Facebook

Leave a Reply

Your email address will not be published.

Recent Posts

NASA Set To Unveil The Deepest Image Of The Universe

NASA Set To Unveil The Deepest Image Of The Universe

Thomas Zurbuchen revealed that seeing the deepest image of the universe for the first time will be akin to witnessing nature “giving up secrets that have been there for many, man
7 hours ago
SEC Fines Ernst & Young $100 Million Over CPA Cheating Scandal

SEC Fines Ernst & Young $100 Million Over CPA Cheating Scandal

The SEC said that EY had earlier been intimated about the potential of staff cheating on accountant exams by an employee. Furthermore, even after an internal EY investigation confi
11 hours ago
A Google Analytics Ban Sweeps Across the EU

A Google Analytics Ban Sweeps Across the EU

The decision came after careful consideration of several complaints by the Austrian NGO noyb. The NGO filed nearly 101 complaints with all EU data protection authorities.
1 day ago
It’s Time. To Ban TikTok, Says US FCC Commissioner

It’s Time. To Ban TikTok, Says US FCC Commissioner

For years, TikTok has continued to assure authorities that data collected from US users is stored in the US, and not China as many believe. A recent Buzzfeed report set fire to the
1 day ago
Tesla Shuts San Mateo Office Laying Off 200 Employees

Tesla Shuts San Mateo Office Laying Off 200 Employees

The billionaire entrepreneur had previously commented on reducing the salaried workforce at Tesla. Out of nearly 100,000 Tesla employees worldwide, 42% are based out of the United
2 days ago
The Mattel Metaverse – Launched by Cryptoys

The Mattel Metaverse – Launched by Cryptoys

In a recent interview, he acknowledged that toys and players are continuously evolving. Keeping this in mind, the company wants to develop its wares both in the physical and digita
2 days ago