Newly-formed Nokia Siemens Networks announced today that it is taking steps to strengthen its "competitive position...
May 4, 2007
Newly-formed Nokia Siemens Networks announced today that it is taking steps to strengthen its “competitive position” in the communications industry by laying off upwards of 9,000 employees over the next four years.
“This is a necessary step to build a Nokia Siemens Networks able to compete now and in the future,” said Simon Beresford-Wylie, the new firms CEO.
Last June, the two companies announced that Nokia Siemens Networks was expected to adjust headcount by 10-15% over a four year period from an initial base of approximately 60,000.
Some of the planned reductions are expected to be in the form of the transfer of personnel to research and development (R&D), manufacturing, and other partners of Nokia Siemens Networks.
The previously announced cost synergy targets of EUR 1.5 billion annually by the end 2010 remain unchanged.
“While we have a great opportunity now that we are Nokia Siemens Networks, we also have to face the reality of the market,” said Christoph Caselitz, its chief market officer.
“Many of our customers are facing intense cost pressure, relentless competition, and new business models. We must make the tough changes necessary to adapt to this reality and lower the cost of connectivity if we are to succeed in our vision of having five billion people in 2015 enjoying the benefits of being connected.”