Local Tech Wire 

Nokia Siemens Networks is lining up work force cuts to lower costs

Nokia Siemens Networks

On The Web

• Nokia Siemens Networks North America
• Nokia Siemens Networks statement
• Local Tech Wire at Twitter – sign up today for latest news alerts

Site Search

Get the latest news alerts: Follow LTW at Twitter

Local Tech Wire

RESEARCH TRIANGLE PARK, N.C. — Nokia Siemens Networks (NYSE: NOK) said Tuesday it is putting on a push for profitability that could cut more than 5,700 jobs globally.

The company also is realigning from five business units to three, it said.

"The operating expense and production overhead savings are expected to come from a wide range of areas, including real estate, information technology, site optimization, strategic work force rebalancing, and overall general and administrative expenses," the company said in a statement issued from Espoo, Finland.

"As part of this effort, the company will also conduct a global personnel review which may lead to headcount reductions in the range of about 7-9 percent of its current approximately 64,000 employees," Nokia said. The company is looking to be spending 500 million euros less by the end of 2011, it said.

Nokia made no predictions where the cuts would come.

"Specific country impact may be higher or lower than the now estimated global 7-9 percent range, and the company will only provide further details related to this intended action when the review and planning process has progressed and employee representatives have been involved where required," Nokia said in its statement.

In the realignment, Nokia announced, it will have three units, each targeting a specific customer focus area. The three will be Business Solutions, Network Systems and Global Services.

Jürgen Walter, currently head of the company’s Converged Core business unit, will assume leadership of the Business Solutions organization. Marc Rouanne, currently head of the company’s Radio Access business unit, will assume leadership of the Network Systems organization. Ashish Chowdhary, currently head of the company’s Services business, will assume leadership of the Global Services organization.

"Business models, innovation, growth and transformation are now very much front and center when it comes to the selection of a technology partner – and our planned new structure will position us well in this changing market," CEO Rajeev Suri said.

Editor’s Blog

The latest blog posts from our Local Tech Wire and WRAL editors. Read more articles…