Telecom equipment major Nokia Siemens Networks is
planning to cut its global workforce by approximately 17,000 by the end of
The total global workforce of Nokia Siemens Networks on 1
November 2011 was approximately 74,000.
Recently, Nokia, handset major, also announced its plans to cut around 3,000 jobs.
The job cut is part of the company’s restructuring plans in order to save operational expenditure. As per the restructuring, Nokia Siemens will focus on mobile broadband and services business. It will also look at divesting businesses which are not viable.
These job reductions will be driven by
aligning the company’s workforce with its new strategy as well as through a
range of productivity and efficiency measures.
These 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.
To reduce the impact of the planned reductions, Nokia
Siemens Networks intends to launch locally led programs at the most affected
sites to provide re-training and re-employment support.
“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
“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,” Suri added.
Nokia Siemens Networks posted
16 percent increase in net sales at EUR 3,413 million in Q3 2011 as compared
with EUR 2,943 million in Q3 2010.
By Telecomlead.com Team