Feeds

Nokia Siemens Networks to slash almost 6,000 jobs

No omelette without strategic workforce rebalancing

Business security measures using SSL

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. ®

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
ISPs' post-net-neutrality world is built on 'bribes' says Tim Berners-Lee
Father of the worldwide web is extremely peeved over pay-per-packet-type plans
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.