Nokia Siemens to Cut 1,500 Jobs in Motorola Purchase Fallout

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The fallout of Nokia Siemens Networks’ purchase of Motorola Solutions assets this past spring may finally be coming to a head. After rumors that the venture has been struggling since it began nearly four years ago, several media outlets are reporting the company plans to cut close to 1,500 jobs.

According to Bloomberg, the cuts make up about 22 percent of the 6,900 workers added when Nokia Siemens bought the Motorola units in April to add business with customers including Verizon Wireless, Sprint Nextel Corp., KDDI and China Mobile.

Some employees in NSN’s GSM and WiMAX divisions in the US and overseas are being laid off, Fierce Wireless reported, “while others are having their jobs shifted elsewhere in the organization.”

After the Nokia Siemens-Motorola Solutions deal closed in April, it became evident that the venture was having trouble attracting new investors, according to media reports. The enterprise has been unprofitable for all but one quarter since it started in April 2007.

Fierce Wireless said that financing troubles have increased talk of a “possible restructuring.”

In April 2011, Nokia Siemens Networks acquired wireless network infrastructure assets of Motorola, Inc. for $975 million in cash. The Netherlands-based joint venture added 6,900 workers in locations including Illinois, England, China, Russia and India when it took on the Motorola unit. As part of the deal, Nokia Siemens Networks acquired a number of research and development facilities including sites in the United States, China, Russia, India and the UK.

After the deal closed last spring, Nokia Siemens Networks CEO Rajeev Suri said the acquisition of Motorola Solutions assets “greatly” complemented its existing business.

“The people, customers and technology we’ve acquired greatly complement our existing business by taking us into new markets and broadening our market share,” Suri said.

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Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Carrie Schmelkin
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Executive Editor, Strategic Initiatives

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