Nokia Siemens Networks chucks 17,000 people overboard
Lightening ship ahead of IPO
Ailing telco kit manufacturer Nokia Siemens Networks (NSN) is to slash 17,000 jobs worldwide by the end of 2013 as it eyes up an IPO.
This equates to a 23 per cent drop in the workforce which along with rationalisation of real estate, targeted budget cuts in IT, product and service procurement and admin costs are expected to reduce overheads by €1bn.
“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 at NSN.
“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.”
The firm, which saw a 16 per cent rise in sales to €3.4bn (£2.9bn) in its last trading update, revealed today it is to make a play for "end-to-end mobile network infrastructures and services" with a particular slant on mobile broadband.
As a result, any areas of the business deemed peripheral to the strategy will be "divested or managed for value", NSN said.
The company has started consultation with staff in line with country-specific laws with locally led programmes aimed at the areas of the business that will be hit hardest by the massive restructure. ®
...as one kicked out in the second round (receiving a decent shedload of wedge) I knew this was inevitable.
The Nokia Networks / Siemens 'alliance' that the gormless Beresford-Wylie set up had a 6-year agreement. That'll take it to April 2013. Then, they can divorce. Just in time for the Initial Public Offering (IPO). Great, coincidental timing.
However, 23% off the company is huge, considering the German branch, due to German employment laws will probably escape lightest, unless they delay until the divorce can be realised, and completed. The Finns, and those in Irving, San Diego etc. will be smashed.
Mercifully, it's lovely revenge on my old manager who kicked me 4 years ago.
Justice and revenge, like 'bubble and squeak' really IS a dish best served cold...
I'm seriously glad I was kicked when I was - there's NO WAY NSN can possibly pay this many the same 'golden goodbye' that I got. They simply don't have it. Think the average was €50,000. Multiply by 17,000... (Not if you're using a windoze XP computer's calculator, you can't copy the result to paste it (!) )
Please buy shares in my company.
I've sacked everyone, so no worries about excess expences.