updated 12:25 pm EST, Wed November 23, 2011
Nokia to cut 23 percent of workforce by 2013
Nokia Siemens Networks on Wednesday started a sweeping chang of the company that will focus on mobile networks and services. As part of this, the company will undergo one of the largest job cuts for a technology firm in recent memory, cutting 17,000 jobs by 2013. This represents 23 percent of all of its employees.
The target is to cut one billion euros (about $1.34 billion) in operating expenses and overhead costs. Other than cutting jobs, this will be accomplished by reducing real estate, IT, product, and service costs along with reducing overall and administrative costs. The company also plans to shrink the number of suppliers.
Despite the cuts, Nokia plans to increase investment in mobile broadband over the next few years, said Rajeev Suri, chief executive officer of Nokia Siemens Networks.
The joint venture between Nokia and Siemens has been struggling despite getting large deals for 3G and 4G upgrades. At one point, it had briefly explored a selloff. Staff cuts suggest that the company couldn't see remaining independent without shrinking and refocusing.