Nokia Siemens cuts 17,000 workers in bid to save US$1.3bn

23 Nov 2011

In a bid to save US$1.3bn by 2013, Nokia Siemens Networks will cut 17,000 jobs around the world. The reduction will impact 22pc of the company’s global workforce.

The company will put mobile broadband at the heart of its strategy in a bid to close the gap on arch-rival Ericsson.

We believe that the future of our industry is in mobile broadband and services – and we aim to be an undisputed leader in these areas,” said Rajeev Suri, chief executive officer of Nokia Siemens Networks. “At the same time, we need to take the necessary steps to maintain long-term competitiveness and improve profitability in a challenging telecommunications market.”

Nokia Siemens Networks will target end-to-end mobile network infrastructure and services, with a particular emphasis on mobile broadband.

“Our goal is to provide the world’s most efficient mobile networks, the intelligence to maximise the value of those networks, and the services capability to make it all work seamlessly,” said Suri. “Despite the need to restructure parts of our company, our commitment to research and development remains unchanged, with investment in mobile broadband expected to increase over the coming years.”

As well as job cuts, Nokia Siemens intends to target savings through selling off real estate, reducing IT, service and procurement costs and through a range of new productivity measures.

New corporate structure for Nokia Siemens

The restructure will change the company’s matrix organisational structure into a network of global delivery centres.

The company said it intends to launch locally led programmes at the most affected sites to provide re-training and re-employment support.

“As we look towards the prospect of an independent future, we need to take action now to improve our profitability and cash generation,” said Suri.

“These planned reductions are regrettable but necessary – and it is our goal to make them in a fair and responsible way, providing the support we can to employees and communities.”

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years