Feeds

Nokia Siemens Networks to slash almost 6,000 jobs

No omelette without strategic workforce rebalancing

Top 5 reasons to deploy VMware with Tegile

Nokia Siemens Networks is planning to shave €500m off annual running costs over the next 26 months, with cuts that could include six thousand jobs.

The plan is to cut €500m from annual expenses by the end of 2011, and includes a new company structure as well as greater emphasis on 'partnerships' and savings from purchasing. The plans also include laying off between seven and nine percent of the 64,000 staff, through a "global personnel review".

Cost cutting comes on the back of third-quarter figures which showed a drop in net sales of 21 per cent and an operating loss of €1.1bn. That loss is, in large part, due to a one-off write down of €908m.

So, the firm feels it can't avoid some "strategic workforce rebalancing" over the next 24 months. This could be more than the nine per cent suggested and is expected - when combined with the restructuring and other measures - to cost around €550m in total: a decent investment if the figures work out.

The new structure, which comes into effect in January 2010, sees the existing five divisions merged into three: Global Services, which takes care of existing customers, Network Systems, supplying the actual hardware for fixed and mobile networks, and Business Solutions, which will focus on pushing advanced billing platforms and "tapping into rich subscriber data to deliver a unique customer experience".

Purveyors of network infrastructure have all had a hard time of late, as the economic situation has slowed the expected rollout of advanced networks around the world. While the developing world is still putting up masts as fast as possible, the margins still aren't as good as the nice new LTE networks that are supposed to be springing up by now. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.