Nokia Siemens Networks To Slash 17,000 Jobs10:11 AM EST Wed. Nov. 23, 2011
Nokia Siemens Networks, the struggling joint venture of Nokia and Siemens, will eliminate 17,000 jobs over the next two years as it looks to stabilize in the tightly competitive global market for networking infrastructure equipment and shift its strategy toward mobile broadband products.
Nokia Siemens confirmed the moves Wednesday, saying it will target end-to-end mobile network infrastructure and services and place "particular emphasis" on mobile broadband, including optical products.
"Our goal is to provide the world's most efficient mobile networks, the intelligence to maximize the value of those networks, and the services capability to make it all work seamlessly," said Rajeev Suri, Nokia Siemens Networks CEO, in a statement. "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."
The job cuts, expected to be completed by the end of 2013, represent about 23 percent of Nokia Siemens' global workforce of about 74,000. They'll be accomplished by what Nokia Siemens described as the "elimination of the company's matrix organizational structure" as well as site and central function consolidation.
According to Suri, Nokia Siemens is looking to remove about 1 billion Euros (roughly $1.35 billion) in operating costs from its current level.
Nokia and Siemens are equal partners in the venture, which was founded in 2007 but has been unprofitable for all but two quarters and lost about $1 billion in 2010. Nokia and Siemens in September confirmed a roughly $1.35 billion capital injection and a new executive chairman in an attempt to prop the company up. Earlier this year, Nokia Siemens Networks acquired wireless infrastructure assets from Motorola Solutions, a move that made it the second largest wireless infrastructure in the world, behind Ericsson.