Nokia Siemens to sell optical networks unit1 min read . Updated: 03 Dec 2012, 03:51 PM IST
Sale comes as Nokia-Siemens seeks €1 billion in cost savings; 1,900 workers to be transferred
NSN didn’t give any financial details for the sale, but said it would be completed in the first quarter of next year.
As a result of the deal as many as 1,900 employees, mainly in Germany and Portugal, will be transferred to the new company, NSN said in a statement.
Nokia Siemens Networks, which competes with Ericsson, Huawei and Alcatel Lucent, is undertaking a cost-cutting plan, which includes laying off a quarter of its staff and selling product lines to focus on mobile broadband.
The joint venture between Nokia Oyj and Siemens AG has been a drain on profits for owners Nokia and Siemens, but it reported record profits in the third quarter, helped by sales of equipment for fourth-generation high-speed LTE networks in Japan and Korea.
The restructuring is expected to result in €1 billion ($1.3 billion) of cost savings by the end of next year.