Nokia Siemens Networks, the global provider of telecommunications infrastructure and professional services, on Wednesday revealed plans to slash 17,000 jobs by the end of 2013 as part of a reorganization.
That represents a 23 percent reduction in the 74,000-employee global workforce of the joint venture between Nokia Corp. and Siemens AG, according to The New York Times, which noted most employees work in Finland and Germany.
"NSN hasn't been profitable since its formation four years ago, and all the proposed measures are reasonable," The Wall Street Journal quoted Alandsbanken analyst Lars Soderfjell as saying, who cautioned that the company likely won't solve its stalling sales by the restructuring program.
The Espoo, Finland-based company said it wants to focus on mobile network infrastructure and services with a specific emphasis on mobile broadband, and the company may divest operations that don't align with its new strategy.
Rajeev Suri, the CEO of Nokia Siemens Networks, said the telecom equipment supplier must "take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications market."
The company hopes to reduce certain annualized operating expenses and production overheads by EUR 1 billion by the end of 2013.
"While these savings are expected to come largely from organizational streamlining, the company will also target areas such as real estate, information technology, product and service procurement costs, overall general and administrative expenses, and a significant reduction of suppliers in order to further lower costs and improve quality," Nokia Siemens Networks said.
