Nokia Siemens Networks (NSN) will now be known as Nokia Solutions and Networks, following completion of Nokia’s €1.7 billion acquisition of Siemens’ 50 per cent stake in the joint venture company — while rumours surfaced of potential job losses.
The Siemens name will be phased out from the network vendor’s name and branding but the company will continue to be referred to as NSN for financial reporting purposes.
The company reaffirmed its focus on mobile broadband, and emphasised that the ownership change brings “further stability, clarity and confidence in the future”.
“While our name and brand have changed, I would like to emphasise that our overall strategy and our focus on mobile broadband remain the same,” said Rajeev Suri, who continues as NSN’s CEO.
Nokia also stated its plan to “continue to strengthen the company as a more independent entity”.
However, Bloomberg reports that the company is considering a reduction of 8,500 jobs to boost profitability and offset declining sales.
Sources said the potential job cuts would bring NSN’s total workforce down to 42,000 by the end of 2014, a 17 per cent reduction. The cuts would be achieved by closing plants and outsourcing manufacturing.
NSN has turned itself around since around late 2011 when it announced a major restructure involving the loss of 17,000 jobs and cost reductions of €1 billion by the end of 2013. It shifted its focus to mobile broadband in early 2012.
With an adjusted operating profit of €822 million (from net sales of €13.7 billion) during 2012, NSN was the most profitable part of Nokia’s business.
However, net sales for the second quarter of 2013 fell by 17 per cent year-on-year to €2.78 billion. This was attributed to the sale of businesses “not consistent with NSN’s strategic focus”, the exiting of certain customer contracts and reduced wireless infrastructure deployment activity.