Nokia closes NSN deal, reportedly weighing 8.5K job cuts

|About: Nokia Corporation (NOK)|By:, SA News Editor

Nokia (NOK +0.6%) has closed its $2.2B acquisition of Siemens' 50% stake in Nokia Siemens. The unit will now be known as Nokia Solutions & Networks (still NSN for short). (PR)

Bloomberg reports Nokia is thinking of cutting NSN's workforce by another 17%, or 8.5K jobs, to 42K by the end of 2014. Sources state the cuts would partly happen via "selling or shutting down plants and farming out manufacturing operations."

NSN has already cut 20K+ jobs over the last two years, moves that have helped return the telecom equipment vendor to profitability. However, its sales fell 17% Y/Y in Q2, partly due to divestments and the exiting of certain low-margin contracts. Sales fell 5% in Q1.

Nokia stated in its Q2 report it plans to cut NSN's "non-IFRS annualized operating expenses and production overheads by more than EUR 1.5 billion by the end of 2013, compared to the end of 2011." That's above a prior target of €1B+.

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