On Friday, Nokia
Siemens reached a deal with German unions to cut 1,600 jobs in Munich. This was
a part of the telecom equipment maker's ongoing restructuring program, which
includes 17,000 job losses globally. The company,
formed by Nokia and Siemens in 2007, said last November that it wanted to cut a
quarter of the group's workforce as it struggles to make a profit amid fierce
pricing competition from Chinese rivals and Sweden's Ericsson. Nokia Siemens said it plans to cut 1,300 jobs at its other sites in
Germany to reach the 2,900 cut target for the country. Unions are strong in Germany and any hiccups in
restructuring process could be costly for the loss-making venture. It is said
for the remaining 1,600 employees working in Munich, alternative solutions
would be found, including part-time contracts for those who are approaching the
age of retirement.
Unemployment
is a huge social problem and the fact that 1,600 people in Germany will be
losing their jobs is terrible. Big job cuts like this are not only happening in
Germany but all around the world. Unemployment can lead to even bigger social
problems such as poverty and homelessness for families. It is a pleasant
surprise to hear that alternative solutions will be found for the 1,600 people
who are going to lose their jobs. This is something that is very rare to hear
but is great because this will hopefully help out those people who will be
getting this bad news by the end of the year.
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