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NSN keeping Moto networks local

NSN CEO says no layoffs are planned; Chicago will remain U.S. hub.

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Nokia Siemens Networks’ (NYSE:NOK, NYSE:SI) U.S. operations may be based in the Dallas area, but after its planned purchase of Motorola’s (NYSE:MOT) networks assets for $1.2 billion, NSN will maintain Chicago — along with its 1600 Illinois-based employees — as a significant sales, operations and technology center.

In fact, NSN CEO Rajeev Suri said that the Finnish-German vendor has no plans as of yet to lay off any of the 7500 employees that make up Motorola’s non-iDEN commercial global networks groups.

Suri said a major factor in the acquisition is Motorola’s talent, which it has no plans of squandering. Suri did rule out the possibility of a future layoff. Considering the overlap in technology groups such as long-term evolution, UMTS and GSM, redundancies are likely, but Suri said it was not part of NSN’s current plan. Suri added that NSN would not force any significant relocation for employees, maintaining primary operations and R&D centers in the U.S. and abroad.

Cultural integration may be an obstacle for Moto employees, as Motorola has a more storied history in wireless telecom than both Nokia or Siemens, though the combined company has far surpassed Motorola in recent years. Suri said that NSN is going into the deal with a respect for Motorola’s contribution to the development of radio and wireless communications. NSN will offer a compelling yet compatible alternative to Motorola culture, he said. “We like to think we’re buying at least part of the history of Motorola,” Suri said.

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© 2012 Penton Media Inc.

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