🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Nokia to cut thousands of jobs following Alcatel deal

Published 06/04/2016, 13:00
© Reuters. The Nokia headquarters is seen in Espoo
ALUA
-
ERICb
-
NOKIA
-

HELSINKI/PARIS (Reuters) - Telecom network equipment maker Nokia (HE:NOKIA) is planning to cut thousands of jobs globally, including 1,400 in Germany and 1,300 in its native Finland, as part of a cost-cutting programme following the acquisition of Alcatel-Lucent (PA:ALUA) earlier this year.

In France, Nokia said on Wednesday it will cut only 400 jobs, but will also create 500 posts in research and development, in line with a promise to the French government last year when it was negotiating the Alcatel deal.

"The pledges made by Nokia when it bought Alcatel-Lucent have been kept," said Frédéric Aussedat, a representative of the CFE-CGC union in France.

Nokia declined to give a total figure for global job cuts. The company employs about 6,850 people in Finland, 4,800 in Germany, 4,200 in France and around 104,000 around the world.

"This (1,300) is a terrible figure, we have rather difficult employment situation in the sector to begin with," Pertti Porokari, chairman of the Union of Professional Engineers in Finland, said. "Seems that Finnish workers have lost this match (against the French)."

Nokia took control of Franco-American Alcatel-Lucent in January following its 15.6 billion euro (13 billion pounds) all-share offer, intended to help it compete with Sweden's Ericsson (ST:ERICb) and China's Huawei [HWT.UL] in a market where limited growth and tough competition are pressuring prices.

© Reuters. The Nokia headquarters is seen in Espoo

Nokia is seeking 900 million euros of operating cost synergies from the Alcatel deal by 2018.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.