Nokia Siemens to lay off 17,000, eliminate unfocused business groups

Network infrastructure joint venture Nokia Siemens Networks announced on Wednesday its plans to cut more than a billion Euro in overhead by the end of 2013. These plans involve refocusing on mobile broadband infrastructure, and cutting its global workforce by 17,000 workers.

As of November first, Nokia Siemens Networks employed 74,000 globally, so this will constitute a 23% reduction in workforce.

The joint venture today said the reductions will include the elimination of the company’s matrix organizational structure, consolidation of sites, transference of activities to global delivery centers, consolidation of certain central functions, and elimination of redundancies from the integration of Motorola’s wireless assets it acquired for $1.2 billion last year, as well as efficiencies in service operations, and process simplification.

Nokia Siemens did not announce the countries in which it plans to institute these reductions, but says it will add more information "as the process proceeds."

Additionally, the company says the business areas that do not mesh well with the focus on mobile broadband will be divested or sold off.

“As we look towards the prospect of an independent future, we need to take action now to improve our profitability and cash generation,” said Rajeev Suri, CEO of Nokia Siemens Networks. “These planned reductions are regrettable but necessary, and it is our goal to make them in a fair and responsible way, providing the support we can to employees and communities.”

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