Nokia Siemens to cut 17'000 jobs

Nokia Siemens said the cuts were part of a strategy to focus on mobile broadband and services and the launch of an extensive global restructuring program. The company said it is aiming to reduce annual operating expenses and production overheads by EUR 1 billion by the end of 2013. In a stock exchange release the company said the strategy also focuses on mobile network infrastructure and services market and targets significant operating expense and production overhead savings. Nokia Siemens Networks said it plans to reduce its global workforce by approximately 17'000 by the end of 2013. 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. "These planned measures are expected to include 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 company-wide process simplification," the company said. Nokia Siemens Networks will begin the process of engaging with employee representatives in accordance with country-specific legal requirements to find socially responsible means to address these reduction needs. “As we look towards the prospect of an independent future, we need to take action now to improve our profitability and cash generation,” said Rajeev Suri, chief executive officer of Nokia Siemens Networks. “These planned reductions are regrettable but necessary – and it is our goal to make them in a fair and responsible way, providing the support we can to employees and communities.”