Nokia-Siemens JV will drop 17,000 jobs to save $1.4 billion
by The Canadian Press
Mobile infrastructure company looks to overhaul operation and focus on high-profit markets
HELSINKI, Finland—Nokia-Siemens Networks will drop 17,000 jobs worldwide by 2013 to cut costs by $1.4 billion a year.
The mobile infrastructure company says the measures are part of “an extensive global restructuring program”, which includes streamlining the organization to improve long-term competitiveness and profitability.
The Finnish-German joint-venture says the move will also affect its suppliers.
Nokia-Siemens Networks CEO Rajeev Suri says the company will focus on mobile network infrastructure and service markets.
“We believe that the future of our industry is in mobile broadband and services. We aim to be an undisputed leader in these areas,” he says. “At the same time, we need to take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications market.”
Nokia-Siemens, which has struggled in recent years against rival network companies, is a 50-50 joint venture between Finland’s Nokia Corp. and Germany’s Siemens AG.
The Espoo, Finland-based company employs 74,000 people in 150 countries, including Canada.
The company has not provided details on where the job cuts will come, which suggests the details are still being worked out.
Suri says Nokia Siemens will focus on profitable high-growth areas, which includes mobile broadband, optical technologies and services.
The company recently announced an agreement with Ottawa-based telecom technology developed DragonWave Inc.
DragonWave agreed to pay $13.95 million in cash, plus another $6.9 million in shares for Nokia-Siemens’ microwave transport business in an agreement that could be worth $154 million.