Two NSN related news bytes. First, Nokia has completed acquisition of Nokia Siemens Networks and has still kept NSN name intact but has made the full name as “Nokia Solutions and Networks“.
Nokia has completed the acquisition of Siemens’ stake in Nokia Siemens Networks. The transaction was originally announced on July 1, 2013. In accordance with this transaction, the Siemens name is being phased out from Nokia Siemens Networks’ company name and branding. The new name and brand is Nokia Solutions and Networks, also referred to as NSN, which will be used also for financial reporting purposes. Nokia Solutions and Networks is wholly owned by Nokia and will continue to be consolidated by Nokia. Rajeev Suri continues as CEO and Jesper Ovesen continues as Executive Chairman of the NSN Board of Directors. The NSN Board of Directors has been adjusted to the new ownership structure as the Siemens-appointed directors have resigned.
Another report from Bloomberg says that in line with the strategy of reducing workforce to boost profitability, NSN may bring its workforce to 42,000 by the end of 2014, partly through selling or shutting down plants and farming out manufacturing. NSN had about 50,500 workers at the end of June. Though nothing has been finalized yet according to the report, but NSN has already shed its workforce by 20000 during past 2 years and it has resulted in profitability for company.
No final decisions have been made and any plans would have to be approved by sole owner Nokia.Nokia Siemens has cut more than 20,000 positions during the past two years, a move that has proved to be successful by restoring profitability amid declining sales as its shareholders tried to unwind a six-year ownership agreement. Any plan to reduce costs further would give the Espoo, Finland-based manufacturer a more competitive position against market leader Ericsson AB (ERICB) and Chinese makers.