Nokia Siemens wields the axe in Finland, will cut 400 jobs

Nokia Siemens Networks has started talks with employees in Finland to cut 400 jobs there. The number is nevertheless small compared with the 17,000 that will lose their jobs globally as part of  NSN's enormous restructuring program announced in November 2011.

Nokia Siemens, the joint venture of Finland's Nokia and German's Siemens, has struggled to make a profit since the company was formed in 2007, and is also narrowing its product range to mobile broadband and services. The firm aims to reduce its operating costs by €1 billion through to the end of 2013.

Earlier this week Nokia Siemens Networks CEO Rajeev Suri confirmed that vendor is in talks with various companies to sell its business support systems (BSS) unit as part of its restructuring.

Both Reuters and the Wall Street Journal reported that Suri told reporters in Bangalore, India, that the company is exploring the BSS sale, and the Journal also noted that Suri said NSN is looking to sell its application business. "I would say overall we have about six divestments that already took place," Suri said, according to Reuters. "They're either not core to our mobile broadband or we see that the profitability is not where we want it to be."

However, there is no gain without some pain. Restructuring costs doubled NSN's operating loss from €111 million during the second quarter of 2011 to €227 million during the second quarter of 2012.

Alcatel-Lucent, too, is undertaking a major restructuring and job-cutting plan to save €1.25 billion by the end of 2013. However,  it is not clearwhere the 5,000 job cuts--promised by CEO Ben Verwaayen in July--will come from. Reuters reports that unions in France, where 9,500 of the 76,000-strong Alcatel-Lucent workforce is based, are alarmed by the prospect of job losses and are seeking help from the newly-elected French government.

For more:
- see this AP article
- see this Reuters article

Related Articles:
Nokia Siemens CEO Suri confirms desire to sell BSS unit
Alcatel-Lucent to restructure operations, shake up management
NSN sees Q2 sales drop 8%, continues with restructuring plan
Alcatel-Lucent to cut 5,000 jobs as part of new restructuring plan
Network infrastructure vendors face tough Q2, road ahead
NSN: Rivals will also have to refocus, cut back