Nokia Siemens Network (NSN), the world's fourth-largest telecoms equipment manufacture is all set to shut down its plant at Bruchsal, Germany. The closure will affect more than 600 people. Nokia would cut about 650 jobs by closing down the company. The workers who had been working at the plant at Bruchsal were informed about the closure on Tuesday.
"Our plan is to work with the labor council there to close the plant as soon as possible, at the latest by the end of 2013," the spokesman said.
The restructuring and cost-cutting plan is being carried out by a 50-50 joint venture between Nokia Oyi and Siemens AG. According to the plans a few product lines are to be sold in order to focus solely on mobile broadband. About a quarter of Nokia Siemen’s staff is to be laid off. By the end of 2013, the restructuring is expected to result in cost savings worth 1 billion euros ($1.3 billion).
According to a company representative the talks with labor representatives of the company is currently on and the company expects that workers would start leaving in three to six months.
Last year, the company had announced that it aimed to cut its workforce by about 17,000 excluding divestments. It was also gearing to achieve its target of slashing about 1 billion euro ($1.29 billion) in costs through the end of 2013.
So far in year 2012 Nokia Siemens has had five disinvestments and has been able to trim about 13,000 jobs from its companies amidst heavy competitive forces in the surcharged market of smartphones.
Nokia Siemens in order to keep its technological edge is always looking out for innovative products, processes and systems. Now Nokia has set its sights on Long Term Evolution- LTE, which is the next generation mobile network. LTE is marketed as 4G LTE. LTE uses a different radio interface with core network improvements. It is based on GSM/EDGE and UMTS/HSPA network technologies and promises faster internet speeds. There is a strong demand for such products in South Korea and Japan among other countries and Nokia Siemens is getting future ready eyeing the market share there.
Edited by Rich Steeves