Nokia Siemens Networks To Lay Off Up To 5,700

MATTI HUUHTANEN

HELSINKI (AP) — Nokia Siemens Networks said Tuesday it will lay off up to 5,700 workers globally as part of a move to cut annual costs by €500 million ($740 million).

The mobile network equipment maker — a joint venture between Finland's Nokia Corp. and Siemens AG of Germany — said it will reduce its five business units to three by January, and strengthen its business through partnerships and acquisitions.

The savings program could include cutting 7 to 9 percent of its current global work force of some 64,000 employees, the mobile network equipment maker said.

The company has been hard hit by waning demand in the recession and cited "changes in the global economy and competitive environment" for the cost cuts. It said it will also reduce overheads, expand its portfolio and consider acquisitions "where assets would add scale to existing product areas or customer relationships."

"As our customers make purchasing decisions, they want a partner who engages in issues well beyond a traditional discussion of technology," said Rajeev Suri, the new chief executive officer of Nokia Siemens Networks.