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Nokia Siemens to Reduce Workforce by 23% with 17000 Job Cuts

On Wednesday Nokia Siemens Network, an equipment joint venture of Nokia and Siemens, announced that they are planning to cut down around one quarter of their work force in order to boost their profit in the networking gear market that is stagnating.

So, by end of 2013 the company will eliminate 17,000 jobs as part of a wide-ranging austerity program that will empower Nokia Siemens to focus on the equipment of mobile broadband. The mobile broadband equipment is the fastest-growing area in the market at present. This job cuts will reduce the work force of the company by 23 percent from present level of 74,000.

Nokia Siemens acquired Motorola's mobile network equipment business for $1.2 billion in the month of July 2010 that added new staff to the company and the planned job cut will affect these employees. Nokia Siemens chief executive, Rajeev Suri, commented that this cut down will help the company to bring down annual operating expenses by $1.35 billion till the end of 2013.

In a statement Suri said, "As we look towards the prospect of an independent future, we need to take action now to improve our profitability and cash generation," reported New York Times.

Suri added "These planned reductions are regrettable but necessary. It is our goal to make them in a fair and responsible way, providing the support we can to employees and communities."