NSN Slims Down GSM, WiMax Teams

Nokia Networks is cutting about 1,500 jobs worldwide following the acquisition of wireless network assets from Motorola Solutions Inc. (NYSE: MSI) earlier this year. (See NSN Finally Seals $975M Moto Deal.)

The deal closed in late April, at which time about 6,900 staff transferred to NSN, swelling the company's headcount to almost 75,000. And in the first few months as part of NSN, the former Motorola assets helped boost NSN's revenues. (See Moto Assets Help NSN's Q2 Growth.)

Now, though, the former Motorola GSM and WiMax teams are being cut, with some staff being redeployed and others being laid off. In a statement emailed to Light Reading, NSN said it expects to cut about 1,500 jobs "in the research and development, supply chain, sales and service organizations related to the WiMAX and GSM business acquired from Motorola Solutions. Nokia Siemens Networks will continue to fulfill its contracts and service obligations to customers."

It also aims to redeploy about 1,200 staff "by shifting them to work on growth products and projects such as its industry-leading LTE and WCDMA businesses."

Staff were informed internally of the plans in late June but the consultation process with employee representatives in the U.K. has just begun, with staff in the town of Swindon (west of London) likely to be affected. The global process is expected to continue into 2012.

It's possible that further headcount reductions at NSN are on their way, as the vendor announced in mid-July that it had abandoned its efforts to attract external investors and that it was planning "to take further steps to improve the competitiveness of the company as a standalone entity." (See NSN Fails to Find New Investor and NSN's Future Still up in the Air.)

Other recent NSN news of interest includes:

— Ray Le Maistre, International Managing Editor, Light Reading

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