Struggling network infrastructure vendor Nokia Siemens Networks is planning to cut 17,000 jobs worldwide, as it aims to cut €1 billion (US$1.35 billion) from its costs by the end of 2013, the company said Wednesday.
About 23 percent of the company's 74,000 employees will be laid off. The 4 1/2-year-old joint venture between Nokia and Siemens has been struggling to compete with Swedish Ericsson and Chinese vendor Huawei. Parent company Nokia's ongoing problems have made Nokia Siemens' situation even more difficult.
Going forward, the company will focus on mobile broadband and related services. Other areas like its wireline business will be sold or "managed for value," according to Nokia Siemens.
Besides savings from staff cuts, Nokia Siemens will also target areas such as real estate, information technology, product and service procurement costs, overall general and administrative expenses, and aim for a significant reduction of suppliers in order to further lower costs and improve quality, the company said.
Nokia Siemens will now begin talks with employee representatives in accordance with country-specific legal requirements.
(More to follow.)