In an effort to bring the costs down in the face of stiff completion and weak demand, Nokia Siemens Networks is planning to cut 4,100 jobs in Germany and Finland.
Nokia Siemens on Tuesday said that it was in discussions with the unions to cut 2900 jobs in Germany and 1200 in Finland. The company in November 2011 had given an indication that it would axe 17,000 jobs or almost one fourth of its work force to save 1 billion euros, according Reuters.
The venture’s margins have been shrinking since it came into existence in 2007. The situation worsens in the backdrop of aggressive pricing and Chinese companies entering the market in a big way, the report suggests.
Apart from this, telecom companies have been forced to cut spending due to uncertain economic conditions. The report said that last week Ericsson stunned markets with a 50 per cent drop in quarterly profit, missing even the gloomiest forecasts, and warned telecoms operators were likely to remain cautious on spending in the months ahead.
Analysts said all European vendors will have to make big cost cuts and look at consolidating to stay in business.