Quantcast
Latest Stories

Nokia Siemens axes services unit, 1,000 jobs at risk



FRANKFURT—Nokia Siemens Networks, a joint venture between Finnish and German engineering giants Nokia and Siemens, said Wednesday it is shutting down one of its German units with the potential loss of 1,000 jobs.

“Nokia Siemens Networks is planning to close its German unit Nokia Siemens Networks Services, a network infrastructure services provider in the area of traditional telecommunications… by end-2013 at the latest. The closure will affect 1,000 employees at 16 sites in Germany,” the company said in a statement.

The business has never been profitable in the five years since it was set up in 2008, instead running up accumulated losses “in the double-digit millions of euros,” Nokia Siemens Networks explained.

“In addition, given the decision to focus on mobile broadband as part of the strategic reorientation of Nokia Siemens Networks, these sort of network infrastructure services are no longer part of our core business,” it said.

The unit, NSN Service, specializes in the installation and maintenance of so-called passive network technology such as cables, antennae and other components.

“We have made every effort to make the unit cost-effective on a lasting basis. But the business continues to be loss-making and there is no sign of it ever breaking even,” said the head of Nokia Siemens Networks’ German operations Hermann Rodler.

“From our point of view, these losses in a business area that is no longer core are unacceptable,” Rodler said.

Negotiations were underway with labor representatives regarding the fate of the unit’s employees, the company added.

The giant services sector union, Verdi, slammed the decision as “scandalous” and “unacceptable.”

It urged Nokia and Siemens not to “punish employees for past business mistakes.”

“The companies concerned must face up to their social responsibilities and offer employees stable employment prospects,” Verdi said in a statement.

Verdi pointed the finger at management, saying they failed to solve the unit’s structural problems.

“Employees are now having to pay for this mismanagement with the loss of their jobs,” the union said.

It noted that the closure would actually affect 850 employees since 200 of NSN Service’s workforce enjoyed civil servant status dating back to when they were employed by the former state telecom monopoly Deutsche Telekom in its technical services operations, which were subsequently sold to NSN.

That meant the 200 employees had an automatic right to a job at Deutsche Telekom, the union said.


Follow us on Facebook Follow on Twitter Follow on Twitter




Recent Stories:

NLEX fights off Derulo Accelero to remain unbeaten 22 mins elapsed Mayweather diehard Bieber eats pride, poses with Pacquiao for photo op 32 mins elapsed Group: Bataan cop killed to stop him from exposing colleagues linked to drug ring 41 mins elapsed Power Pinays rip Singapore to enter quarters in Asian volley tilt 1 hour elapsed Balikatan could spoil peace talks, says militant group 2 hours elapsed Troubled history fuels Japan-China tension 2 hours elapsed Palace: Our concern is to ensure MRT runs smoothly 2 hours elapsed NPA accuses Davao governor of maintaining private army 2 hours elapsed
Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , Finland , Germany , IT , job cuts , Nokia Siemens Network , telecom company



Copyright © 2014,
.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement Advertisement
  1. PH has slowest internet in Southeast Asia
  2. Netizens seethe over Aquino’s ‘sacrifice’ message
  3. Nintendo’s trailblazing Game Boy marks 25th anniversary
  4. Nasa’s moon-orbiting robot crashes down
  5. Did Deniece Cornejo lambast Vhong Navarro on social media?
  6. SKY says ‘malicious third parties’ caused internet access problems
  7. Netizens pay respects to Gabriel Garcia Marquez
  8. Facebook rolls out ‘nearby friends’ feature
  9. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  10. Taylor Swift tries video blogging, crashes into fan’s bridal shower
  1. Did Deniece Cornejo lambast Vhong Navarro on social media?
  2. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  3. Mommy Dionisia Pacquiao scores, takes over social media
  4. Netizens seethe over Aquino’s ‘sacrifice’ message
  5. IT technician found guilty of defrauding firm of P130,000
  6. Netizens react to Pacquiao’s victory over Bradley
  7. Memes flourish after Pacquiao victory
  8. Philippines may watch ‘blood moon’ online
  9. Online-addicted man arrested over son’s death
  10. Nasa’s moon-orbiting robot crashes down
  1. #RejectedBbPilipinas2014Questions flood Twitter
  2. Did Deniece Cornejo lambast Vhong Navarro on social media?
  3. Netizens fall in love with Crimea prosecutor Natalia Poklonskaya
  4. Mommy Dionisia Pacquiao scores, takes over social media
  5. Nude and so dangerous
  6. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  7. Russia tries to curb Crimean prosecutor’s Internet fame
  8. Memes flourish after Pacquiao victory
  9. Netizens thank Capa for Lee arrest
  10. Filipino artist copies piece from digital art

News

  • Bernice Lee arrested by NBI team
  • Group: Bataan cop killed to stop him from exposing colleagues linked to drug ring
  • Chemical Engineer licensure examination
  • Troubled history fuels Japan-China tension
  • Palace: Our concern is to ensure MRT runs smoothly
  • Sports

  • NLEX fights off Derulo Accelero to remain unbeaten
  • Mayweather diehard Bieber eats pride, poses with Pacquiao for photo op
  • Power Pinays rip Singapore to enter quarters in Asian volley tilt
  • PBA D-League: Waves edge skidding Superchargers
  • Ilad’s last-second basket lifts Gems over Bakers
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Arrest warrants out vs. Deniece Cornejo, Cedric Lee, et al over serious illegal detention
  • Lindsay Lohan says she had a miscarriage
  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Business

  • Century Pacific Food sets IPO price at P13.75 per share
  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Balikatan could spoil peace talks, says militant group
  • DFA officers hold workshop on aiding human traffic victims
  • Canada in communication with PH on toxic wastes
  • Filipinos in Middle East urged not to panic amid MERS-CoV scare
  • Obama on mission to quiet Asia skeptics
  • Advertisement
    Marketplace