Nokia Corporation (NYSE:NOK) seals Siemens Network buyout

Posted by Michael Korte August 9, 2013 0 Comment 1175 views

On Wednesday, Nokia Corporation (NYSE:NOK) finally completed its Nokia Siemens Network buyout. The company has now been renamed Nokia Solutions and Networks (NSN). NOK and Siemens had formed this combined company in 2006. This joint venture spotlighted wireless and wired infrastructure. However, the Nokia Siemens ended-up having a tough time facing competition from biggies such as Huawei Technologies and Erricsson.

As an outcome of this, the company embarked upon a major restructuring plan via which it downsized its workforce by 17,000 employees and constricted its focus only to mobile broadband and its related services. Analysts say that NOK’s own issues of holding ground in the mobile space added fuel to the fire.

The job axe

Now, NSN, the new company will be cutting down 8,500 jobs in an effort to boost profitability, said three people in the know. Apparently, the company is zeroing-in on a plan via which it will be bringing-down its workforce down to 42,000 by 2014-end. This would mean a 17% reduction that would be achieved partly by shuttering or selling plants and also by farming out manufacturing. At the end of June, NOK had around 50,500 workers. All the final decisions are still to be made and approval would come from Nokia Corporation (NYSE:NOK).

The only Windows friend

Nokia is the only handset manufacturer who has been sticking to its guns as far as using the Windows Phone System is concerned. Microsoft’s Windows Phone has managed to push BBRY out of its number 3 spot and Nokia seems to be the sole company that is sticking by its side. IDC reported that in the Q2, NOK accounted for 81.6 percent of all the Windows Phone shipments.

Nokia Corporation (NYSE:NOK) has three different operating segments- Devices and Services, NSN and NAVTEQ. Devices and Services develops and manages the entire portfolio of mobile products for the company. It also designs and develops application, content and services.

About Michael Korte

Michael Korte an investigative reporter at GDP Insider and is a breaking news reporter. Michael work includes investigations of misconduct by federal prosecutors and industrial air pollution around the nation's schools. His reporting has been recognized with the Hillman Prize for Newspaper Journalism, the Grantham Prize for Excellence in Reporting on the Environment, and the Philip Meyer Journalism Award for reporting that incorporates social science methods.

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