Global telecommunications equipment supplier Nokia Siemens Networks yesterday announced plans to improve its financial performance and return to growth by resorting to a second round of job cuts and reduce annualised operating expenses and production overheads by €500 million by the end of 2011
The world's second-largest maker of telecommunications equipment announced plans to cut 7 to 9 per cent or nearly 6,000 jobs from a 64,000 strong workforce aimed at bringing in savings of €500 million ($732 million) in operating expenses annually by the end of 2011 compared to end 2009.
Nokia Siemens Networks, the 50:50 joint venture between Finland's Nokia and Germany-based Siemens, had proposed to cut around 10-15 per cent of its workforce or 1,820 jobs at the time of its merger, in June 2006. (See: Nokia Siemens to cut 1,820 jobs)
The Espoo, Finland-based company's plan includes reorganising the company's business units to better align with customer needs; extensive operating expense and production overhead reduction, including a global personnel review; ongoing purchasing savings; expanded partnering to ensure a full portfolio of world-class products and services; and potential acquisitions where assets would add scale to existing product areas or customer relationships.
The former head of Services business of Nokia Siemens Networks Rajeev Suri, appointed on 1 October 2009, to head the company will realign the company's five business units into three, each targeting a specific customer focus area from 1 January 2010.
''As our customers make purchasing decisions, they want a partner who engages in issues well beyond a traditional discussion of technology,'' said Suri.
''Business models, innovation, growth and transformation are now very much front and centre when it comes to the selection of a technology partner – and our planned new structure will position us well in this changing market,'' he added.