Europe Hit With Big Telecom Jobs Cuts
Cable and Wireless plc (NYSE: CWP) is cutting about 700 jobs in the U.K. following its acquisition of business services specialist THUS, a takeover deal that closed on October 1. (See C&W Offers £329M for THUS.)
Most of those being made redundant in the coming few years will be THUS staff, many of whom are based in Scotland (THUS was originally called Scottish Telecom). THUS has about 1,700 staff, while C&W has 12,850 (worldwide, not including THUS).
Reporting its half-year results Monday, C&W said it expects to create annual savings of £82 million ($126.5 million) from the acquisition by its 2011/2012 fiscal year.
News of the job cuts -– reported in detail by the Scotsman newspaper -- come only days after another telecom firm with operations in Scotland, Gemfire Corp. , was reported to have closed down. (See Gemfire Burning?)
NSN closes out merger job cuts
While Nortel staff wait to see how their company's new plans might affect them, the headcount reduction plans are more concrete at Nokia Siemens Networks (NSN), which today detailed the final tranche of job losses associated with the post-merger cost-cutting plans. (See Nokia Siemens Cuts Jobs.)
Last year, shortly after opening its doors for business as a new joint venture, NSN announced it would lose 9,000 of its 60,000 employees. (See Nokia Siemens to Cut 9,000.)
By the end of September this year the vendor had reduced its workforce by just more than 6,000, so it still has about 3,000 employees to cut to help achieve its target of reducing annual operating expenses by €2 billion ($2.5 billion) by the end of 2008.
About 750 of the 3,000 job cuts will take place in Finland, while NSN is closing a site in Munich Hofmannstrasse in Germany with the loss of 500 jobs. In addition, the vendor's manufacturing site in Durach, Germany, which employs about 500 people, is to be sold in a management buy-out process. NSN says once those reductions are complete, the company will have completed most of its staff cuts in Germany, which rather suggests there are a few more to come.
Outside its home markets of Finland and Germany, 50 jobs will go in Egypt, where NSN is closing a small manufacturing site, while about 20 jobs will be cut in the U.S. Additionally, "other countries are expected to see limited reductions and most of those changes will happen between now and early 2009," the vendor stated in its press release.
As for Nortel, about 4,500 of Nortel's 31,200 staff worldwide (including joint venture employees) are based in Europe, and while the vendor did not provide details of its cuts, it seems certain that European staff will be among those heading for the exit door.
— Ray Le Maistre, International News Editor, Light Reading
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