Telecom equipment maker Nokia Siemens Networks has decided to cut 17,000 jobs (23 per cent of its work force of 74,000) worldwide by the end of 2013, as it aims to reduce operating expenses and production overhead; and realign its business to focus on mobile broadband and services. With its restructuring plans, the company expects to save Rs.6,410.26 crore (1 billion euros) during this period.
On Sept 29, Nokia and Siemens had announced that they would provide an additional capital of Rs.3,205.13 crore (500 million euros) to the joint venture to strengthen its financial position.
"While we plan to reduce our work force significantly, we will not make simple across-the-board reductions," said Rajeev Suri, chief executive officer, Nokia Siemens Networks in a conference call Wednesday. However, he declined to specify which regions would be affected the most and added that Nokia Siemens Networks intends to launch locally led programmes at the most affected sites to provide re-training and re-employment support.
In addition, the company will be realigning its strategy to focus on mobile broadband and services. Suri stated, "Despite the need to restructure parts of our company, our commitment to research and development remains unchanged, with investment in mobile broadband expected to increase over the coming years."
These planned measures are expected to include site consolidation, transfer of activities to global delivery centres, consolidation of certain central functions, cost synergies from the integration of Motorola's wireless assets, and efficiencies in service operations. Nokia Siemens acquired Motorola's wireless network equipment unit for Rs.7,692.31 crore ($1.2 billion) in July 2010.
The organisational streamlining also includes cutting costs in areas such as real estate, information technology, product and service procurement costs, overall general and administrative expenses, and a significant reduction of suppliers, the company said in a statement.
On Sept 29, Nokia and Siemens had announced that they would provide an additional capital of Rs.3,205.13 crore (500 million euros) to the joint venture to strengthen its financial position.
"While we plan to reduce our work force significantly, we will not make simple across-the-board reductions," said Rajeev Suri, chief executive officer, Nokia Siemens Networks in a conference call Wednesday. However, he declined to specify which regions would be affected the most and added that Nokia Siemens Networks intends to launch locally led programmes at the most affected sites to provide re-training and re-employment support.
In addition, the company will be realigning its strategy to focus on mobile broadband and services. Suri stated, "Despite the need to restructure parts of our company, our commitment to research and development remains unchanged, with investment in mobile broadband expected to increase over the coming years."
These planned measures are expected to include site consolidation, transfer of activities to global delivery centres, consolidation of certain central functions, cost synergies from the integration of Motorola's wireless assets, and efficiencies in service operations. Nokia Siemens acquired Motorola's wireless network equipment unit for Rs.7,692.31 crore ($1.2 billion) in July 2010.
The organisational streamlining also includes cutting costs in areas such as real estate, information technology, product and service procurement costs, overall general and administrative expenses, and a significant reduction of suppliers, the company said in a statement.
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