HELSINKI: Finnish-German telecom equipment maker Nokia Siemens said on Tuesday that it could reduce its 64,000-strong workforce by 7-9 percent, or by 4,500 to 5,800 jobs, in a cost-cutting drive. The cost-cutting is to “improve financial performance and return to growth” by reducing 500 million euros ($732 million ) in annualized operating expenses and production overheads by 2011, the company said.
“As part of this effort, the company will also conduct a global personnel review which may lead to headcount reductions in the range of about 7-9 percent of its current approximately 64,000 employees,” the company added.
Nokia Siemens’ woes have dragged down parent companies Nokia of Finland and Siemens of Germany.
Nokia, the world’s biggest mobile-phone maker, last month reported its first quarterly loss in a decade partly due to a 908 million euro impairment charge for goodwill in the Nokia Siemens joint venture.
The firm launched in early 2007 and immediately announced 4,500 job cuts in both Finland and Germany, reducing the company’s workforce to 17,500 people from 22,000 employees.
“Despite having fully achieved the original merger integration savings objective of Nokia Siemens Networks, changes in the global economy and competitive environment make further cost reductions necessary,” the company said.
The Finnish-German business did not say which countries would be affected by the job cuts, but indicated these could be larger than nine percent of the workforce in some of them.
“Specific country impact may be higher or lower than the now estimated 7-9 percent range and the company will only provide further details related to this intended action when the review and planning process has progressed and employee representatives have been involved where required,” the company added. – AFP
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