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Nokia Technologies Workers to Be Spared as Networking Business Starts Layoffs

The company is expected to cut thousands of jobs in the wake of its Alcatel-Lucent acquisition.

Nokia

Nokia has begun the process for mass layoffs in the wake of its Alcatel-Lucent acquisition, but sources say that its San Francisco Bay Area-led Nokia Technologies unit will largely be spared.

Workers at that group, which is responsible for patent licensing, brand licensing and products like the Ozo virtual reality camera, say they have been told their unit will not be effected by the widespread cuts being made to the company. It is unclear how many U.S. jobs from the networking business could be impacted.

Nokia is required to notify worker groups and unions in some countries and has begun to do so. However, the U.S. is not a country where it is required to make such consultations.

The company did announce it plans to cut 1,300 jobs in Finland, and Bloomberg reported that global layoffs could affect 10,000 to 15,000 of Nokia’s 104,000 workers. Nokia has said it plans to make about $1 billion in cuts as part of the Alcatel-Lucent deal.

A Nokia Technologies representative declined to comment, referring questions to the company’s headquarters in Finland. A representative there did not immediately respond to requests for comment.

In a February interview, Nokia CEO Rajeev Suri outlined his 10-year plan to rebuild Nokia into a major player, a process that so far has included selling off the Here mapping unit and doubling down on the network equipment business. Through Nokia Technologies, Suri is encouraging long-term planning for new categories including health care and virtual reality, as well as ways to keep the Nokia name in consumers’ minds, such as licensing the Nokia brand to a cellphone manufacturer.

The company had originally hoped to have a plan for the phone effort by the end of last year, but Suri says the company wants to make sure it finds the right partner before proceeding.

This article originally appeared on Recode.net.

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