Nokia Siemens Networks (NSN) has agreed a deal with the IG Metall Trade Union that will see it cut 1,600 jobs at its operations in Munich, Germany.

The deal means 2,000 of the current 3,600 jobs will remain at Munich’s St.-Martin-Strasse site, as proposed by IG Metall. NSN’s original plan was to close the facility.

NSN will accept the plan on the condition that a significant majority of the 1,600 employees who will leave the company join an interim employment organisation that will provide support and training for a term of two years for roles outside NSN, before the end of April. The next step is to agree which employees will make the move to the interim organisation.

“IG Metall’s proposal would enable us to achieve our restructuring objectives for Germany ahead of schedule and would guarantee planning reliability. This makes economic sense and provides justification for Munich to remain a significant location for Nokia Siemens Networks,” said chairman of NSN’s Supervisory Board, Herbert Merz.

NSN announced last November a global restructuring programme including the loss of 17,000 jobs, equivalent to 23 percent of its workforce. The company said it plans to stick to its objective, announced in January, to cut 2,900 of its 9,100 roles in Germany. The plan is to concentrate operations in five locations in the country, with all other sites to be closed.