The planned job cuts are part of a strategy to focus on mobile broadband (including optical), customer experience management and services. The company’s Services organisation will continue to strengthen its global delivery system. Business areas that are not consistent with the new strategy are planned to be divested or managed for value.
The programme has targets to reduce non-IFRS annualised operating expenses and production overheads by 1 billion Euros. Savings are expected to come from the 17,000 job cuts, real estate, information technology, product and service procurement costs and overall and general administrative expenses, with a significant reduction in suppliers.
Included in the job cuts is an elimination of the company’s matrix organisational 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.
“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, CEO 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.”
NSN has yet to give any information as to the countries that will be affected by the cuts.
