Nokia-Siemens to slash quarter of workforce, reshuffle focus on mobile broadband

Nokia-Siemens to slash quarter of workforce, reshuffle focus on mobile broadband

Summary: Joint venture Nokia Siemens Networks is to cut and burn 17,000 jobs in a bid to claw back flailing shares and poor competitive reach.

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Nokia-Siemens is to slash and burn its joint venture workforce in a bid to save up to €1 billion ($1.4 billion) by the end of 2013, by cutting around 23 percent of its employee base.

In what appears to be a strong-minded and deep-cutting move, 17,000 jobs will go between the joint Finnish-German company in trying to narrow the gap behind telecommunications giant Ericsson.

The massive "global restructuring" plan will be one of the fastest and deepest cuts a company has seen in recent history.

While Nokia and Siemens have been trying to sell their joint-owned network equipment venture, the partnership continues to struggle to find a potential buyer, as Ericsson, which was recently bought out by Sony as the Sony Ericsson venture collapsed, continues to dominate the market.

By reducing its operating expenses and production overheads -- by restructuring and refocusing its overall strategy -- the company shift its overall strategy by focusing on mobile network infrastructure, such as mobile broadband.

But these cuts are part of a series of ongoing layoffs by the Helsinki telecoms giant, though lamentably "necessary to maintain long term competitiveness and improve profitability in a challenging telecoms market."

At the end of September, Nokia cut 3,500 jobs across the company in a bid to claw back costs amidst poor mobile marketshare. Describing the cuts as "painful, yet necessary", it was Europe that took the full force of the layoffs, as Stephen Elop, Nokia's chief executive maintained its "commitment" to the region.

There is currently no word on where most of the job cuts will affect the Nokia-Siemens partnership, though after previous cuts, it is expected to hit mainland European workers the most, as where the bulk of its operations are.

Nokia Siemens is a joint 50 percent each stake venture between Finnish Nokia Corp. and Germany's Siemens AG. Looking up for Nokia this morning, Nokia's shares were trading up over 2.3 percent on yesterday in Helsinki. Siemens was down 1.3 percent to $1.20 a share at market opening.

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Topics: Broadband, CXO, Mobility, Networking, Nokia, IT Employment

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9 comments
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  • RE: Nokia-Siemens to slash quarter of workforce, reshuffle focus on mobile broadband

    Wp7 has failed.

    Start Sue the world.
    Sultansulan
    • obviously you have a mental deficiency

      @Sultansulan

      If you can not understand that this division is not related to hansets.
      Are all you trolls actually this dumb?
      John Zern
      • The Point Being ...

        @John Zern ... it's another millstone around the neck of Nokia, which it can ill afford.
        ldo17
      • That is not what Sultansulan was implying.

        @John Zern
        The point being that Nokia is far more rounded company. Sultansulan assumed it was to do with WP7, which it was not related in any way, shape, or form.

        So Mr. Zern was correct in his assesment of Sultansulan and his post.
        :|
        Tim Cook
  • Zack, are you really doing fact checking, ever?

    1) Ericsson was never "bought out by Sony". Sony bought out Ericsson's part in their mobile handsets joint venture that was called "Sony-Ericsson". Ericcson itself is too big for Sony to ever buy (though Sony never intended to buy Ericsson anyway).

    2. Sony-Ericsson did not "collapse". The company is not dissolved, no one gets fired or anything. Just Ericsson's shares of SE joint stock company were bought out by Sony, so now the company is Sony's fully owned subsidiary.
    dderss
  • Most likely, layoffs due to the horrible economic conditions in Europe,

    and, which will likely affect the U.S. as well, considering that, Europe is a harbinger of things to come to other markets. <br><br>Get ready!
    adornoe
  • No problem

    They'll just outsource everything to China and leave their greedy stockholders intact. Maybe get some tax breaks in the deal.
    ScorpioBlue
  • RE: Nokia-Siemens to slash quarter of workforce, reshuffle focus on mobile broadband

    Hummm. Was high costs and poor market share the fault of the decision makers or the 13,000 people who will lose their jobs? If an apple starts to rot do we cut out the bad part and keep the good part or do we cut out the good part and keep the bad part? Common sense is not so common. Common sense is not taught in MBA business schools.
    totefrosch
  • RE: Nokia-Siemens to slash quarter of workforce, reshuffle focus on mobile broadband

    No senior management will be affected
    Dr BobM