Amidst rumors of job cuts after the deal between Nokia and Alcatel, the former is expected to generate 500 research jobs in France. Michel Combes, Alcatel’s boss, mentioned that the companies have already recruited some employees for the takeover target and will be adding 500 more to the list to fulfill the requirement.
“The undertaking that was made was not to cut any more jobs in terms of volume, even though there may be changes in the nature of jobs, and to employ at least 500 new researchers,” he said to French radio station France Info on Wednesday, as quoted by Reuters.
The $16.7 billion deal was made by the companies to make the Nokia business survive amidst competition.
When asked about the Alcatel-Lucent job cut, Chief Executive of Nokia, Rajeev Suri, said it was too early to comment. However, he admitted there will be some impact on the headcount to keep up with cost-cutting measures. He also added that procurement and other costs have to come down so that synergic target can be achieved.
“Finland will remain an important R&D centre for us, and France will be added on,” mentioned the CEO. He also added that he is confident that the transition between the companies will receive European, Chinese, and American support.
Combes also mentioned that the deal between the two businesses needs nine-country clearances.