Nokia Siemens Networks (NSN) is to slash 1,500 jobs as the ailing operator reduces the 6,900 employees inherited from its $1.2bn acquisition of Motorola's telecoms unit.
The cuts will hit UK employees first, covering several areas including the firm's GSM and WiMax divisions, where there has been a reduction in demand. NSN blamed this on its own failings rather than as a reflection on the technology.
"The employees affected by the redeployment and redundancies are in the research and development, supply chain, sales and service organisations related to the WiMax and GSM business acquired from Motorola Solutions," the firm said.
"The reduction reflects lower demand for these products and services caused by the delay in closing the acquisition. Although the company aims to redeploy employees to higher growth areas, some redundancies are planned."
Around 1,200 of the 6,900 affected employees will be moved to work on other technologies including LTE as the firm looks to keep pace with market demand for new and faster wireless technologies.
Quocirca analyst Clive Longbottom told V3 that the cuts make sense for NSN, noting that, while they are being made in several important divisions, it is likely to be more of a management issue than any reflection on the technology.
"With Nokia itself being in a woeful condition, there has to be cuts across the board. Motorola also brought in nearly 7,000 employees, and there would have been some overlap there," he said.
"Overall, I don't think this is any reflection on WiMax, nor much of a comment on NSN itself. There will still be plenty of people left to match the needs for WiMax as it becomes more of a reality."
NSN is facing a tough time in the market with increasing competition from rivals such as Huawei and Ericsson.
Furthermore, joint parent company Nokia is reportedly looking to sell its stake in the firm to reduce the financial burden the partnership puts on the ailing mobile phone giant.
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