Thursday, May 3, 2007

Nokia Siemens Networks to Cut 9,000 Jobs

One month after completing its merger, Nokia Siemens Networks announced a round of job cuts affecting up to 9,000 people and aimed at strengthen its competitive position in the communications industry. The company's stated goal is to reduce headcount by 10-15% over a four year period from an initial base of approximately 60,000 with the goal of saving EUR 1.5 billion annually by the end 2010. Some of the job cuts may be in the form of the transfer of personnel to research and development (R&D), manufacturing, and other partners of Nokia Siemens Networks.

Nokia Siemens Networks has begun the process of sharing its proposed overall headcount reduction plans with employees and plans for Germany and Finland with employees and employee representatives. The company plans similar processes will take place in other countries over the next few months.

"This is a necessary step to build a Nokia Siemens Networks able to compete now and in the future," said Simon Beresford-Wylie, chief executive officer of Nokia Siemens Networks. "While we are a global company, with more than sixty percent of our employees already outside of Finland and Germany, both Finland and Germany will continue to be major centers of employment for Nokia Siemens Networks."

"While we have a great opportunity now that we are Nokia Siemens Networks, we also have to face the reality of the market," said Christoph Caselitz, chief market officer of Nokia Siemens Networks. "Many of our customers are facing intense cost pressure, relentless competition, and new business models. We must make the tough changes necessary to adapt to this reality and lower the cost of connectivity if we are to succeed in our vision of having five billion people in 2015 enjoying the benefits of being connected."


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