Nokia Siemens to Cut 17,000 Jobs Worldwide
As the company plans to refocus its core strategy and streamline operations, it announces 17,000 jobs will be cut.Nokia Siemens Networks, a joint venture of Nokia and Siemens, said it plans to reduce its global workforce by approximately 17,000 by the end of 2013. These reductions are driven by the company's plans to align its workforce with its new strategy of end-to-end mobile network infrastructure and services, with a particular emphasis on mobile broadband, as well as through a range of productivity and efficiency measures. The total global workforce of Nokia Siemens Networks on Nov. 1 was approximately 74,000. These measures are expected to include the elimination of the company's matrix organizational structure, site consolidation, transfer of activities to global delivery centers, consolidation of certain central functions, cost synergies from the integration of Motorola's wireless assets, efficiencies in service operations, and companywide process simplification. The company's services organization will further strengthen its global delivery system, while business areas not consistent with the new strategy will be divested or managed for value.
"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, CEO 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."