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Uncertainty for Nokia Siemens local ops

By Damaria Senne, ITWeb senior journalist
Johannesburg, 15 May 2007

It's unclear how Nokia Siemens Networks' global plan to cut up to 15% of its staff by 2010 will impact local operations.

The company launched global operations last year amid bribery allegations within the ranks of joint venture partner Siemens Networks. It recently announced plans to cut 700 jobs in Finland this year and 3 000 jobs in Germany by 2010.

The job cuts are part of a plan to find synergy between the partners and enable annual cost savings of 1.5 billion euros, says spokesman Regine van Tonne.

In total, Nokia Siemens foresees cutting 10% to 15% of its 60 000 staff by 2010, which adds up to 9 000 people, she says.

Van Tonne says she "can't say at the moment" what the impact will be on the Middle East and Africa (MEA) region, as the investigation is still under way.

The company's MEA division has 4 000 employees based in 44 countries. The local operation, which was officially introduced last month, employs 730 people.

In addition to the job cuts, Nokia Siemens plans to reduce overheads, develop greater efficiencies in the partners' research and development divisions, and ensure consolidation and utilisation of resources, says Van Tonne.

MEA sub-regional head Jan Mrosik previously stated the company would discuss issues with local stakeholders before any changes arising out of the synergy exercise are announced.

Bribery case ruling

Meanwhile, a Bloomberg report says a German court has ordered Siemens to give up 38 million euros of the gains it made from sales that were said to be marred by corruption and bribery.

The court also found former Siemens finance chief Andreas Kley and former consultant Horst Vigener guilty of bribery and in breach of their fiduciary duty, the report says.

Siemens said the decision had no basis in law and fact, and it would appeal.

Related story:
Cloudy start for Nokia Siemens Networks

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