In a Wednesday statement, Nokia Siemens Networks revealed that it is shuttering the operations at one of its German units, called NSN Service; with the move to potentially put as many as 1,000 jobs at risk at 16 German sites.
Going by the information shared by one unidentified source, the closure of the NSN Service unit by Nokia Siemens Networks - a joint venture between two bigwig engineering firms, Finland-based Nokia and Germany-based Siemens - will take effect by the end of next year.
The move to close down the 2008-established NSN Service unit - a network infrastructure services provider in the traditional telecom area - is apparently an upshot of the fact that the unit had, as per Nokia Siemens Network, recorded accumulated losses "in the double-digit millions of euros" in all its five years of existence.
About the move to close the NSN Service unit, Hermann Rodler - the head of Nokia Siemens Networks' German operations - said that despite the company's relentless efforts to make the unit "cost-effective on a lasting basis," the business till continued to be loss-making, with "no sign of it ever breaking even."
Moreover, giving yet another reason behind the decision to shutter the NSN Service unit, Nokia Siemens Network said that, as a part of the company's "strategic reorientation," the focus had shifted to mobile broadband; with the result that network infrastructure services were "no longer part of our (the company's) core business."
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