Nokia will continue its sourcing activities in Japan. The Japanese operation of Nokia Siemens Networks, Nokia's network infrastructure business, is not affected by this announcement.

This week, Nokia Siemens Networks also suffered a blow. Nokia Siemens Networks confirmed that, with its financial partner, it did not submit the highest bid for Nortel's optical networking and carrier Ethernet assets in the bankruptcy court-sanctioned auction.

It lost the bid to Ciena Corp., which has been selected as the successful bidder in the auction of substantially all of the optical networking and carrier Ethernet assets of Nortel's Metro Ethernet Networks business. Ciena agreed to pay $530 million in cash and issue $239 million in aggregate principal amount of 6 percent Senior Convertible notes due 2017 for a total consideration of $769 million for the assets.

Meanwhile, Nokia Siemens Networks is also conducting a global personnel review which may lead to headcount reductions in the range of about 7-9 percent of its current approximately 64,000 employees. Nokia itself plans to reduce some of its R&D activities in Finland and Denmark. The cuts are expected to affect up to 230 employees at Nokia's Oulu site in Finland and approximately 100 employees at Nokia's Copenhagen site. The total number would represent approximately 2 percent of Nokia's R&D personnel globally.

By: DocMemory
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