Nokia Siemens Networks details plans to cut 9,000 jobs: Siemens CEO announces resignation

The good news: The new Nokia Siemens Networks is intent on creating a “winning company” despite difficult market conditions.
But 9,000 workers have to go.
In a carefully worded press release, Nokia Siemens referred back to a statement made a year ago when the two parties announced a merging of their network businesses that a 10%-to-15% reduction in “headcount”-that is, people-would be necessary over four years, out of the merged entity’s base of 60,000 employees.
In Finland, where about 10,000 are employed by the company, 700 workers will go in a first round of reductions. Within three years, job cuts in Finland will affect about 1,500 to 1,700 employees, according to the company. In Germany, 2,800 to 2,900 jobs out of a base of about 13,000 will be cut within three years. Similar announcements will be made over the coming months in other countries where the company operates.
That accounts for roughly half of the expected cuts. Job cuts are also planned in “other countries,” in accordance with local laws, the company said. The company did not say where else it has offices, but noted that attrition might play a role, even as the company recruits workers with skills not currently available in the countries where it operates.
The job cuts-at least in Germany-may well prove controversial, despite the company’s early statement that reductions would be necessary. When Siemens sold its handset business to BenQ Corp. in 2005 to form BenQ-Siemens, and that entity subsequently shuttered its operations a year later, laying off thousands in Germany, Siemens was forced by an uproar among politicians, unions and the press to create a $35 million to $40 million fund to assist its former workers.
Siemens remains under investigation by authorities for alleged improprieties in securing network contracts. Siemens’ CEO Klaus Kleinfeld, though not under investigation, recently announced his resignation.