Nokia Siemens Networks (NSN), the struggling data networking and telecommunications equipment company, will cut 17,000 jobs within two years in order to save €1 billion in costs.
NSN, the world's second-largest maker of telecommunications equipment, which currently employs 74,000, will reduce headcount 17,000, or 23 per cent of its global work force as part of its extensive global restructuring program.
NSN, the joint venture between Nokia and Siemens and headed by Rajeev Suri, targets to reduce its annual operating expenses and production overheads by €1 billion by the end of 2013.
Suri said, "We need to take the necessary steps to maintain long-term competitiveness and improve profitability in a challenging telecommunications market," adding: "These planned reductions are regrettable but necessary."
While these savings are expected to come largely from organisational streamlining, the company will also target areas such as real estate, information technology, product and service procurement costs, overall general and administrative expenses, and a significant reduction of suppliers in order to further lower costs and improve quality.
Although the company did not disclose where the cuts would come from, NSN said that these planned reductions are expected to be driven by aligning the company's workforce with its new strategy as well as through a range of productivity and efficiency measures.