Nokia Siemens Networks reported late last week that its plans to maintain about 2,000 employees in Munich is set to be approved following the acceptance of a plan for those employees to join an “interim employment company.”
“As a result of these developments, about 2,000 people will become part of newly founded Nokia Siemens Networks companies in Munich,” NSN noted in a statement.
The move follows an agreement struck last month between the infrastructure vendor and German trade union IG Metall. NSN added that the official acceptance of the agreement is set for April 18. Those employees that do not accept the offer will be let go.
NSN had stated that it planned to reduce its German-based workforce from 9,100 employees to approximately 6,200 employees. The reductions will include concentrating German operations in five “business-critical” locations and to close all other sites. The Munich operations were initially part of the group to be closed.
The cuts are part of a broader restructuring that will see NSN cut approximately 17,000 jobs worldwide. NSN said the cuts, along with reduced operating expenses and production overhead, would save $1.3 billion over the next two years.
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