Nokia Siemens to Shutter 'Unprofitable' German Services Unit by End of FY13
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Following up on a news item reported Tuesday, more confirmation is out today on Nokia Siemens Networks shuttering its German unit.
According to an e-mailed statement from the Nokia (NYSE: NOK) and Siemens AG (NYSE: SI) joint venture, the German net infrastructure services unit will close by the end of 2013. NSN notes that the unit, which comprises 16 sites around Germany, has become unprofitable.
In total, the closure will affect about 1,000 workers. Discussions will soon begin with worker reps over separation agreements and severance.
No estimate of how much the closure will cost the joint venture has been made yet.
The move may not be that surprising in the big picture; NSN has said it will aim to be a more streamlined company and promised divestiture of non-core assets moving forward. Nokia and Siemens sought bids for the joint venture last year, but were unable to get any solid bids for the assets.
Nokia is positive in early trading, while Siemens remains flat.
According to an e-mailed statement from the Nokia (NYSE: NOK) and Siemens AG (NYSE: SI) joint venture, the German net infrastructure services unit will close by the end of 2013. NSN notes that the unit, which comprises 16 sites around Germany, has become unprofitable.
In total, the closure will affect about 1,000 workers. Discussions will soon begin with worker reps over separation agreements and severance.
No estimate of how much the closure will cost the joint venture has been made yet.
The move may not be that surprising in the big picture; NSN has said it will aim to be a more streamlined company and promised divestiture of non-core assets moving forward. Nokia and Siemens sought bids for the joint venture last year, but were unable to get any solid bids for the assets.
Nokia is positive in early trading, while Siemens remains flat.
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