Nokia Siemens Networks and German trade union IG Metall said they have reached an agreement that would maintain 2,000 jobs in Munich if a majority of the 1,600 employees set to lose their jobs agree to join “an interim employment company” by the end of April. NSN said the new organization would provide support and training for two years to those employees for jobs outside of NSN.
NSN noted that it remains committed to previously announced job cuts that will see it 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, though the new proposal could see that location remain.
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.
“This solution stands on the condition that a significant majority of the affected employees do agree to join the transfer company,” said Herbert Merz, chairman of NSN’s Supervisory Board. “IG Metall’s proposal would enable us to achieve our restructuring objectives for Germany ahead of schedule and would guarantee planning reliability. This makes economic sense and provides justification for Munich to remain a significant location for Nokia Siemens Networks. Furthermore the company will provide clarity to the affected employees earlier than first planned.”
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