Nokia (NOK) Completes Nokia Siemens Acquisition; Plans Massive Job Cuts
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Nokia (NYSE: NOK) has closed its proposed $2.3 billion acquisition of Siemens' (NYSE: SI) stake in Nokia Siemens Networks (NSN), but that doesn't mean the work is done.
Reports today have Nokia weighing job cut of 8,500 positions at NSN -- renamed Nokia Solutions -- amounting to 17 percent of total positions at the unit. The goal is to get the workforce at NSN to 42,000 by the end of next year, Bloomberg said today, citing people familiar with the matter. However, nothing is set in stone and plans may change over the coming months.
News comes as sales and profits in the telecom sector have been getting tougher to come by. Nokia itself has cut about 20,000 jobs over the last two years in an effort to streamline operations in the wake of increasing competition in mobile.
Following the close of Nokia's NSN purchase, it is also mulling the potential to offer a €500 million bond, of which the proceeds would be combined with NSN cash to pay Nokia a €900 million dividend.
Also on the docket is facility consolidation, with operations in China, India, and Finland all in the cross hairs.
Nokia is up 0.8 percent early.
Reports today have Nokia weighing job cut of 8,500 positions at NSN -- renamed Nokia Solutions -- amounting to 17 percent of total positions at the unit. The goal is to get the workforce at NSN to 42,000 by the end of next year, Bloomberg said today, citing people familiar with the matter. However, nothing is set in stone and plans may change over the coming months.
News comes as sales and profits in the telecom sector have been getting tougher to come by. Nokia itself has cut about 20,000 jobs over the last two years in an effort to streamline operations in the wake of increasing competition in mobile.
Following the close of Nokia's NSN purchase, it is also mulling the potential to offer a €500 million bond, of which the proceeds would be combined with NSN cash to pay Nokia a €900 million dividend.
Also on the docket is facility consolidation, with operations in China, India, and Finland all in the cross hairs.
Nokia is up 0.8 percent early.
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