Electronics Production | November 03, 2009
NSN with massive layoffs and restructuring
Nokia Siemens Networks will lay off between 4500 and 5700 of its worldwide staff. Additional to that, the company also announced to restructure its business activities creating three new business units.
As part of its effort, the company will also conduct a global personnel review which may lead to headcount reductions in the range of about 7-9 percent of its current approximately 64,000 employees. Specific country impact may be higher or lower than the now estimated global 7-9 percent range and the company will only provide further details related to this intended action when the review and planning process has progressed and employee representatives have been involved where required. As the stability of customer relationships is a key priority, disruption to key customer-facing sales positions as a result of this review is expected to be limited. Reorganization The Company’s five business units are planned to be realigned into three, each targeting a specific customer focus area. The planned new business units, which are expected to come into effect on January 1, 2010, are: - Business Solutions, which will focus on helping customers generate new revenue and differentiate from the competition by providing a faster time to market for end-user services; enhancing billing and charging capability; automating and simplifying processes; addressing the challenges of convergence; and tapping into rich subscriber data to deliver a unique customer experience. Jürgen Walter, currently head of the company’s Converged Core business unit, will assume leadership of the Business Solutions organization. - Network Systems, which will focus on providing both fixed and mobile network infrastructure, including the company’s innovative Flexi base stations, core products, optical transport systems, and broadband access equipment. Marc Rouanne, currently head of the company’s Radio Access business unit, will assume leadership of the Network Systems organization. - Global Services, which will focus on helping customers improve operational efficiency through outsourcing of their non-core activities; supporting and managing their networks with robust customer care offerings; and ensuring fast and cost-effective implementation of new networks and network upgrades. Ashish Chowdhary, currently head of the company’s Services business, will assume leadership of the Global Services organization. Rouanne and Walter will join the Company’s Executive Board, effective January 1, 2010. Chowdhary is already a member of the Executive Board and will remain so in his new role.