Nokia Siemens Networks will cut as many as 1,500 jobs from assets acquired from Motorola, a spokesman announced on Thursday.
The telecommunications company will slash 1,500 of the 6,900 workers it acquired from Motorola Solutions Inc, according to Bloomberg News. Nokia Siemens acquired the Motorola assets, which include wireless technologies, in April for $975 million.
Nokia Siemens was formed in 2007 as a joint venture between phone maker Nokia and engineering firm Siemens. The company has only hit profitability once since the initial merger.
"The parents still have a barely breakeven business on their hands, and there's more work to be done on the Nokia Siemens side too," Sami Sarkamies, an analyst at Nordea Bank, told Bloomberg. "I'd expect a more comprehensive profitability improvement plan including job cuts in the coming weeks or months, especially if they intend to target an IPO in a few years."
The job cuts will be in its GSM and WiMax divisions across the world, including in the United States and United Kingdom, according to Reuters.
The company may also transfer as many as 1,200 former Motorola workers internally, according to Bloomberg.