Nokia Siemens Networks(NSN) recently said that it will cut 17,000 jobs globally, or 23% of its work force of 74,000, to save €1 billion ($1.35 billion) in annual costs by 2013.
NSN said it will focus on mobile broadband and services, and aims to divest or “manage for value” units that aren’t central to its plans.
“While we plan to reduce our work force significantly, we will not make simple across-the-board reductions. We will focus on doing what we do best,” CEO, Rajiv Suri said in a conference call Wednesday. He declined to specify which regions would be affected.
In September, Nokia and Siemens injected €1 billion into the struggling joint venture, which recorded a €114 million operating loss in the three months to Sept. 30 despite a 16% rise in revenue to €3.41 billion. They also appointed Jesper Ovesen, the former chief financial officer of Danish operator TDC A/S, as the company’s new chairman.
The planned cost-cutting measures include site consolidation, cost synergies from the integration of Motorola’s wireless assets and efficiencies in service operations, it said. Nokia Siemens acquired Motorola’s wireless network equipment unit for $1.2 billion in July 2010.
Nokia-Siemens is the world’s No. 2 mobile infrastructure maker in world.
[Source]- The Wall Street Journal