Nokia Siemens to Show 17,000 Staff the Door Globally

Nokia Siemens Networks has decided to show 23 percent of their staff the door to save the company from losses. This step has been taken to restructure business. The chief executive of the Nokia-Siemens partnership, Rajeev Suri explained plans to cope with the current losses of the company.

According to Suri, the company will save €1 billion ($1.35 billion) in annual costs by 2013 if they remove 17,000 employees globally in the coming days. He also cleared that they are reducing the mobile broadband businesses and leaving the other non-core trades, thereby giving the company double its current target.

He continued that though there are job cuts, the company will be focusing more to do the best. Unfortunately the regions where the staff reducing is not revealed in the conference.  Earlier, the company has made some talks with the private-equity firms like Gores Group LLC, Platinum Equity LLC, Kohlberg Kravis Roberts & Co. and TPG Capital to solve its loss, but all went unsuccessful.

Nokia and Siemens have spend €1 billion in September, after posting a €114 million operating loss in the previous three months period and handed the company’s chairman to Jesper Ovesen, the former chief financial officer of Danish operator TDC A/S.

Suri revealed that the company wants to be independent in future and is now taking measures to increase the profitability and cash generation. It is slated that this partnership will come to an end by 2013. In the last five consecutive quarters, only one period was operationally profitable for the company.

Meanwhile, some reports suggest that the Nokia Siemens will have to include the public as their share holders, along with this job cutting to come out of the situation.

Nokia Siemens Networks have made it clear that they will be concentrating more on the mobile network infrastructure and services especially on mobile broadband.  Site consolidation, cost synergies from the integration of Motorola’s wireless assets and efficiencies in service operations are also included in the cost cutting steps.

What do you think of this Nokia Siemens measure?