Nokia Siemens to slash 5,800 jobs, cut $1.5bn
STRUGGLING telecom equipment maker Nokia Siemens Networks aims to slash up to 5,800 jobs in a move the firm saud will save it €1bn (£900m) over the next two years.
The company will revamp its operations hoping to benefit from its stronger position in offering services to operators.
Telecom gear makers have been hit hard by the recession, which crimped operator spending, and by tough competition from China’s Huawei and ZTE. NSN, a joint venture of Nokia and Siemens, said it aimed to cut €500m in annual fixed costs by the end of 2011, putting up to 5,800 of the firm’s 64,000 staff at risk. Workers in Germany and Finland protested against the plan.
Last month market leader Ericsson reported third-quarter earnings below expectations and declined to forecast an upturn.