| Nokia Siemens may cut jobs to reduce costs |
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03/11/2009 16:09 (17 Day 23:12 minutes ago) | |||||
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The FINANCIAL -- Telecom equipment maker Nokia Siemens Networks has unveiled plans to restructure itself in an attempt to improve financial performance and return to growth. The company plans to cut between 7% and 9% of its 64,000 person workforce to reduce costs.
The company, a joint venture between Finland's Nokia Corp. and Germany's Siemens AG, said it aims to reduce annualized operating expenses and production overheads by €500 million ($738.3 million) by the end of 2011 compared with 2009 through the measures, according to The Wall Street Journal.
"Despite having fully achieved the original merger integration savings objectives of Nokia Siemens Networks, changes in the global economy and competitive environment make further cost reductions necessary," it said in a statement, the Reuters reported.
NSN also said it aimed for savings "substantially larger" than 500 million euros by lowering procurement costs, according to the same source. "This targeted reduction is expected to position the company to meet ongoing customer requirements for competitive pricing." NSN said it would also shrink its five business units to three as part of the shake-up.
Tuesday's announcement comes after Nokia Siemens Networks last month posted falling third-quarter sales although it said it now expects the mobile infrastructure market to fall only 5% in 2009, from previous expectations for a 10% drop, The Wall Street Journal wrote.
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