Nokia Siemens to Undergo Massive Job Cut

Nokia Siemens Networks is set to cut as many as 5,760 jobs, globally, as part of a massive restructuring plan to control operating expenses, said a company statement.

The troubled joint venture between Nokia and Siemens said it aims to reduce operating expenses and production overheads by €500 million a year between the end of 2009 and the end of 2011.

The network vendor has also targeted even larger savings in its product and service procurement costs, although it did not disclose an exact figure.

The announcement comes after Nokia in October swung to a surprise third quarter loss after taking a €908 million impairment charge on Nokia Siemens Networks.

The handset maker said at the time that its infrastructure unit had lost market share, and that reversing this trend was its top priority.

From the beginning of January 2010, Nokia Siemens said its restructuring plan will examine partnerships and acquisitions in a bid to shore up its operations, and reorganise its five operating businesses into just three.

As part of the scheme the company said it will carry out a global personnel review that could see it cut between 7% and 9% of its 64,000-strong workforce.

Nokia Siemens said cost reductions will also be made in its real estate, information technology, and overall administrative expenses.

In a bid to strengthen its position, the company said it is also looking into potential acquisitions and partnerships.