NSN to axe 5,700 jobs

Nokia Siemens Networks plans major staff cuts in a bid to shore up its finances

Tags: FinlandNokia Siemens Networks
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NSN to axe 5,700 jobs NSN plans sweeping cuts in a bid to return the company to profitability. (Getty Images)
By  Roger Field Published  November 4, 2009

Telecom equipment vendor Nokia Siemens Networks is planning to shed up to 5,700 employees in a bid to cut costs by EUR500 million ($736 million) in the next two years.

As part of the cost cutting exercise, Finland-based NSN said it would reduce its existing five business units to three, while a review its "global personnel" could lead to a cull of about 7-9% of its 64,000 employees.

The company added that it would also seek to strengthen its business through partnerships and acquisitions "that enhance the scale of existing product and service business lines and that deepen relationships" with key customers.

"We recognise that we are operating in a market where customer needs are evolving fast," said Mika Vehvilainen, chief operating officer of Nokia Siemens Networks. 

"We see acquisitions and expanded partnering as important tools to help meet these needs in the fastest, most efficient way possible."

The company, which has some 30 offices in the MEA region, did not specify where in its global operations the job cuts would be made, and only stated that "specific country impact may be higher or lower than the now estimated global 7-9% range". 

NSN said in a statement that it would only provide further details when the review and planning process had progressed and employee representatives "have been involved where required."

The cost cutting measures follow a tough year for NSN, which saw its sales plummet by 21% in the third quarter of 2009, leading to an operating loss of EUR1.1 billion ($1.6 billion).

The Finland-based company, a joint venture between Finnish handset maker Nokia and German conglomerate Siemens, has struggled amid the economic downturn and increasing competition from rivals including Chinese vendors Huawei and ZTE.

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