Nokia Siemens Networks ended a service deal with Oi in Brazil, resulting in 3,500 job cuts on top of 17,000 already announced.

Most of the employees involved have left the company, Ben Roome, a spokesman for Nokia Siemens, said by e-mail. Reuters reported the news earlier today.

Nokia Siemens announced a five-year field maintenance deal with Oi, the telephone services brand of Telemar Norte Leste SA (TMAR5), in 2009, taking on about 3,000 Oi and third-party employees. The company is cutting about 17,000 jobs in its main businesses as it pares business lines to focus on mobile broadband equipment and related services.

“The exit obviously contributes to our focus and cost- reduction plans,” Roome said. It doesn’t affect the company’s Sao Paulo global network operations center, he added.

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