Nokia Siemens Agrees for 1,600 Jobs Cut with German Unions

The company formed in partnership with Nokia and Siemens back in 2007 is experiencing high losses in personnel this year, a global restructuring plan already being on the way. Friday, Nokia Siemens reached an agreement with German unions to cut 1,600 jobs in Munich in 2012.

In order to counter-attack the company losses and come on profit against Chinese (Huawei) and Sweden (Ericsson) based rivals, Nokia Siemens is prepared to fire almost 17,000 employees from all over the world, with Germany and Finland being on the front line. Of influence are also Nokia's smartphone sale numbers during the past year.

The German union IG Metall has agreed with Nokia Siemens for 1,600 jobs cut in Munich, while the rest of the country will suffer an additional 1,300 lay-off process so the company reaches its 2,900 target for the region.

The company was forced to keep its German headquarter in Munich and continue to employ around 2,000 workers, at least for the following three years. It was also stated that all those who were fired will be taken care of with alternative working solutions, like part-time contracts for those who are near retirement.

As for the whole 2,900 lay-off plan that Nokia Siemens has in mind for Germany, this will finalize towards the end of 2012. This totals almost a third of the company's German staff, which totals 9,100.

Source: Reuters