Nokia Siemens Networks (NSN) is trimming its South African workforce by about 160 people as part of its bid to restructure the company and implement a new strategy.
NSN says impacted roles include employees in what was previously known as its business solutions organisation, as well as in services, financial, logistics and customer teams, “based on local factors”.
Before the group embarked on a global staff cutting exercise, it had about 570 local staff members out of a total of 74 000. It says it has no plans to pull out of SA.
The company, launched by Nokia and Siemens five years ago, is cutting about a quarter of its staff as it battled to make a profit. Nokia Siemens Networks plans to reduce its global workforce by about 17 000 by the end of 2013.
Last November, the group said it aimed to be a leader in mobile broadband and services. However, CEO Rajeev Suri said: “At the same time, we need to take the necessary steps to maintain long-term competitiveness and improve profitability in a challenging telecommunications market.”
Trade union Solidarity said recently the group was “carrying out large-scale retrenchments in SA, Nigeria and Germany”. It noted that about 160 employees would be affected.
In early March, the company told its local staff that about 160 employees would be affected by restructuring. In Nigeria, it aims to trim 22 employees, while in Germany, its goal is to cut 2 900 jobs.
“The reductions in SA are being conducted with fairness and respect to all employees, taking into account the need for restructuring to help secure our long-term sustainability, and it conforms to labour legislation in SA,” the company says in response to a query from ITWeb.
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