The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Computer, Electrical Electronic And Optical Products Manufacture Of Computer, Electronic And Optical Products 26.30 - Manufacture of communication equipment
1,400 - 1,500 jobs Number of planned job losses
Announcement Date
6 April 2016
Employment effect (start)
5 April 2016
Foreseen end date
31 December 2018
Description
Nokia, a Finnish communications corporation, announced plans to cut up to 15,000 jobs worldwide by the end of 2018. A total of 1,400 jobs will be cut in Germany. According to the company, all German sites are affected. Job cuts are related to the acquisition of the competitor Alcatel-Lucent. Redundancies are part of the management’s cost saving strategy as the company wants to become more competitive. Nokia wants to save some €900 million of operating costs per year. However, Germany will remain as a centre of research and development. Nokia is aiming to focus on future-oriented technology such as 5G, the Cloud and industrial Internet.
The executive board and the works’ council will negotiate severance packages in almost 30 countries in the upcoming weeks. The management emphasises the importance of socially acceptable redundancies and will provide transition and other supporting measures.
Nokia, headquartered in Espoo (Finland), currently employs 106,000 staff worldwide.
Update (24-08-2016):
In the meantime the number of job cuts increased up to 1,500.
The affected sites will be mainly Berlin, Hamburg, Stuttgart and Düsseldorf. The German Metalworkers’ Union (IG Metall) announced plans to form a collective bargaining committee in September, in order negotiate the future of all six sites.
Sources
6 April 2016: Augsburger Allgemeine (online)
6 April 2016: Heise Online
6 April 2016: T-online.de
24 August 2016: Der Tagesspiegel
Citation
Eurofound (2016), Nokia, Merger/Acquisition in Germany, factsheet number 86957, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/86957.
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