)
Nokia Siemens Networks has decided to close its fixed-line equipment manufacturing facility in Kolkata with effect from July 31, 2013.
"Decline in demand, refocus of company strategy towards mobile broadband and unprofitability of fixed-line telephony products accounted for the closure," the company said in an e-mailed statement.
The company had communicated the closure notice to the remaining 48 employees of the factory on May 31, 2013. These employees will receive closure compensation.
Nokia Siemens Networks had 65 employees on its permanent payroll in the Kolkata facility. Out of these six employees took transfers within the organisation and 11 had accepted the voluntary separation scheme last year.
The Kolkata factory has not been profitable as mobile phones gained popularity and customers started shifting from fixed-line phones to mobile phones.
The company also embarked on a substantial two-year restructuring and transformation programme in November, 2011 which involved focusing its business on mobile and broadband services.
"There have been several initiatives in support of this shift in strategy and the decision to close the Kolkata factory is one of such initiatives to support the company's focused business portfolio and restructuring programmes," the company said.
"We understand separation is never easy and thus have endeavored to approach this with responsibility and consideration for the future of the employees. All options of alternate employment within Nokia Siemens Networks were considered, offering opportunities within the organisation in Bengal and other locations of Nokia Siemens Networks' business in India," it added.
Currently, the company has around 700 employees in West Bengal and manages mobile telecom networks that carry over 26.5 million subscribers in the state.
