Nokia Siemens Networks to lay off 300 workers

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The dismissals announced by Nokia Siemens Networks (NSN) a month ago have shrunk to less than half of the original estimate. The company aspired to reduce the number of its workers by 700, but now there are less than 300 people on the list of those facing redundancy. On Monday NSN informed that 230 product developers will switch over to the IT company TietoEnator, which will reduce the need for dismissals.
      Furthermore, the number of employees has shrunk some through retirements and other “natural causes”. In all, NSN estimates its personnel in Finland will be reduced by about 600 individuals this year.
      The reductions mark only the beginning in the cost synergies planned by the network giant, which was launched earlier this year when Nokia and Siemens combined their network operations arms. At the beginning of May, NSN announced that in the next three years it would reduce its staff in Finland by 1,500-1,700 individuals. Worldwide the company expects to shed around 9,000 employees.
     
In their Tuesday statements, the organisations representing the NSN workers were somewhat divided in opinions as to how successful the personnel negotiations had been.
      The Union of Salaried Employees chairman Antti Rinne considered the dismissal of 300 people "a tough figure".
      "In the end, with all the fixed period and rental staff included, the number of reduced jobs will be in the region of 700. This cannot be considered a good thing", Rinne says.
      Spokesman Tomi Seppä from the Delegation of Professional and Managerial Employees, in turn, sees the number of lay-offs having been reduced to a half as a positive sign.
      "NSN is taking more responsibility, for example, of the re-training of those being laid off", Seppä summarises.
     
As part of the personnel negotiations NSN and the employees also agreed on a support package for those who voluntarily hand in their notice. Though details of the support package have not yet been made public, shop steward Pentti Arpalahti describes it significantly better than what Nokia has customarily offered its workers.
      Both employee organisations agree that parent company Nokia should also take some responsibility of employing the dismissed staff.
      According to Seppä, many engineers could easily be educated to become Java and Symbian programme specialists, who then could be employed by Nokia.
      Rinne, in turn, insists that Nokia give work to some of the dismissed NSN workers in its Salo factory.
      Seppä, however, does not consider employing engineers with Bachelor’s and Master’s degrees on a factory production line a realistic alternative.


Previously in HS International Edition:
  Nokia Siemens Networks get going amid reduced market expectations (3.4.2007)

Links:
  Nokia Siemens Networks

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