FRANKFURT: Nokia Siemens Networks, a joint venture between Finnish and German engineering giants Nokia and Siemens, said Wednesday it will shut down its German networks services unit, putting 1,000 jobs at risk.
"Nokia Siemens Networks is planning to close its German unit Nokia Siemens Networks Services, a network infrastructure services provider in the area of traditional telecommunications... by end-2013 at the latest. The closure will affect 1,000 employees at 16 sites in Germany," the company said in a statement.
The business has never been profitable in the five years since it was set up in 2008, instead running up accumulated losses "in the double-digit millions of euros," Nokia Siemens Networks explained.
"In addition, given the decision to focus on mobile broadband as part of the strategic reorientation of Nokia Siemens Networks, these sort of network infrastructure services are no longer part of our core business," it said.
The unit, NSN Service, specialises in the installation and maintenance of so-called passive network technology such as cables, antennae and other components.
"We have made every effort to make the unit cost-effective on a lasting basis. But the business continues to be loss-making and there is no sign of it ever breaking even," said the head of Nokia Siemens Networks' German operations Hermann Rodler.
"From our point of view, these losses in an business area that is no longer core are unacceptable," Rodler said.
Negotiations were underway with labour representatives regarding the fate of the unit's employees, the company added. (AFP)