Nokia Siemens Networks says it will cut 3,500 jobs in Brazil after ending a big contract with Brazilian telecom operator Oi. During a press conference held at this week’s Mobile World Congress, NSN CEO Rajeev Suri said part of the company’s strategy is to abandon non-essential operations.
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The elimination of 3,500 jobs follows the company’s decision to cut 17,000 jobs in November, when NSN announced it was selling off its fixed broadband business to Adtran.
When contacted by RCR Wireless News, Oi said that, “while repositioning its operations, NSN has opted to negotiate the migration of the contract agreement of providing services and maintenance of Oi Velox’s plant in the state of Rio de Janeiro.” Oi also noted that they have agreed to move to two other suppliers: Telemont and Serede, which are also incorporating NSN’s workers.
In statement, Oi clarified that it holds a range of “highly qualified suppliers to meet the demands of the company,” and added that the carrier maintains Serede as its wholly owned subsidiary to provide network services, installation and repair services to customers.
Jobs cut
As Ricky Corker, President of NSN North America, explained during a question and answer session, the job cuts were part of a strategy to re-focus the company’s efforts on the mobile broadband space as well as a rationalization of its Motorola acquisition that resulted in some overlap and the selling off of its WiMAX operations.
Earlier this year, Nokia Siemens Networks, the world’s No. 2 maker of mobile telecoms network equipment, unveiled plans to cut approximately 1,200 jobs in Finland and 2,900 in Germany. Finland and Germany are NSN’s home countries.
