Nokia Siemens Network to shed up to 5700 jobs.
Nokia Siemens Networks (NSN), the joint venture between Nokia and Siemens, the telecommunications groups, is set to shed up to 5700 jobs from its workforce. Rajeev Suri, its new chief executive, is trying to reinvigorate the operation by cutting €500 million (£448 million) from its cost base.
NSN said that it wanted to trim up to 9 per cent of its 64,000-strong workforce and expected to complete the cost-saving plan by 2011.
NSN, which is split 50-50 between the Finnish and German companies, has struggled over the past year. A €908 million impairment charge relating to the unit pushed Nokia, the world’s largest mobile phone maker, into the red in the third quarter. As its owners fight falling sales, they are anxious to cut its costs.
NSN has about 1000 workers in Britain, where it runs Orange’s network, as well as T-Mobile and 3 UK’s infrastructure. It also owns Apertio, a customer-management platform provider, based in Bristol, which it bought for €140 million early last year.
It is hoped that Britain will not bear the brunt of the cuts as Mr Suri is keen to refocus the NSN business on its services operations — the main part of its UK business. The company also has large numbers of staff in China, India and Brazil, as well as in Finland and Germany.
Source: Business Times Online
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