TelecomLead top news 2011 : Nokia Siemens to slash 17,000 jobs to save EUR 1 billion

Telecom equipment major Nokia Siemens Networks’ decision
to slash its global workforce by approximately 17,000 by the end of 2013 to
save EUR 1 billion was the top news in 2011.

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 telecom industry feels that many equipment makers
will follow suit in coming months. Companies such as Huawei has grown its
manpower in single digit in 2011 amid fears of slowdown in several foreign

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.

Telecom equipment and solutions major Nokia Siemens
Networks announced its strategy to focus on mobile broadband and services

The company’s Services organization will strengthen its
global delivery system. Business areas not consistent with the new strategy are
planned to be divested or managed for value.  Quality and innovation will
continue to be priorities for the company, with ongoing investment in both

The company also announced the launch of an extensive global restructuring

Nokia Siemens Networks will target end-to-end mobile
network infrastructure and services, with a particular emphasis on mobile

Nokia Siemens Networks is planning to provide the world’s
most efficient mobile networks, the intelligence to maximize the value of those
networks, and the services capability to make it all work seamlessly.

Despite the need to restructure parts of the company, its
commitment to research and development remains unchanged, with investment in
mobile broadband expected to increase over the coming years.

As part of the restructuring, Nokia Siemens Networks will reduce its non-IFRS
annualized operating expenses and production overheads by EUR 1 billion by the
end of 2013, compared to the end of 2011.

These savings are expected to come largely from organizational streamlining.
The company will also target areas such as real estate, information technology,
product and service procurement costs, general and administrative expenses, and
a significant reduction of suppliers to further lower costs and improve

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.

Note: TelecomLead top news 2011 was selected by editorial team

By Danish Khan
[email protected]