FRANKFURT (Reuters) - The chief executive of Nokia Siemens Networks (NSN), the world’s second-largest maker of mobile phone network equipment, has warned employees NSN cannot expect any more money from its parent companies, a German magazine reported on Sunday.
Parents Nokia and Siemens have provided capital “for the last time” and expect this investment will provide results, Spiegel reported, citing a copy of a letter sent from Rajeev Suri to NSN’s 9,000 employees in Germany.
“Our profitability is still too low, we’re burning cash reserves, have too many business areas that have never produced adequate returns and regions that have always been loss-making,” Spiegel cited the letter as saying.
NSN has struggled to make a profit since being set up in 2007 and last week announced plans to axe 17,000 jobs, or nearly
a quarter of its workforce.
Nobody at NSN was immediately available for comment.
Reporting by Victoria Bryan; Additional reporting by Tarmo Virki; Editing by David Holmes