Nokia Siemens reorganises to cut costs
Up to 9% of workforce to be laid off
Nokia Siemens Networks has announced that it is cutting its number of business units from five to three, with the aim of cutting €500 million off its annual operating costs by the end of 2011. The restructing will cost €550 million over the next two years.
The company said it would be cutting its 64,000 work force by 7-9%, although it had no further details on where the cuts would fall geographically.
NSN said it would also be looking out for more acquisitions and partnerships - specifically to address areas where it cannot meet customers' current needs.
"We recognize 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 planned new business units, which are expected to come into effect on January 1, 2010, are:
- Business Solutions, which will bring together the OSS/BSS activities - including data analysis and customer experience management. Jürgen Walter, currently head of the company’s Converged Core business unit, will assume leadership of the Business Solutions organization.
- Network Systems, to be headed up by Marc Rouanne, currently head of the company’s Radio Access business unit.
- Global Services, for managed services and outsourced management, to be headed up by Ashish Chowdhary, currently head of the company’s Services business.
Rouanne and Walter will join the Company’s Executive Board, effective January 1, 2010. Chowdhary is already a member of the Executive Board and will remain so in his new role.
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