Telecom equipment-maker Nokia Siemens Networks (NSN) will close down its fixed-line manufacturing facility in Kolkata in July this year.
Around 48 employees, who had not opted for voluntary retirement schemes or internal transfers, will be retrenched.
The manufacturing unit in Kolkata is located in the IT-township of Sector V in Salt Lake on the eastern fringes of the city. The manufacturing facility caters to fixed-line telephony; one of the non-core areas of the company.
According to Satendra Singh, Head of Manufacturing Operations (India), a decline in demand, refocus of the company on the mobile broadband and “unprofitability of the fixed line business” led to closure of the Kolkata unit.
“Employees will be paid a salary till July, after which settlement will be made as per applicable laws,” Singh told Business Line .
The company had in May last year offered a voluntary retirement scheme, followed by an internal transfer order for its 70-odd employees. While 11 employees took the retirement scheme, 6 of them took internal transfers.
The average age of these employees is around 40 years. Another retirement scheme was also offered this year, before the closure notice was issued. Employees were informed on Friday night while notices were put up at the factory by Saturday morning.
“The Government has also been notified of the closure. Right now there are no offers for the retrenched employees,” Singh added.