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Nokia Siemens to cut 17,000 jobs | Nokia Siemens to cut 17,000 jobs |
(40 minutes later) | |
The struggling telecoms equipment manufacturer Nokia Siemens Networks is cutting 17,000 jobs. | The struggling telecoms equipment manufacturer Nokia Siemens Networks is cutting 17,000 jobs. |
The cuts from its 74,000-strong workforce should help cut operating costs by some 1bn euros ($1.35bn; £860m). | The cuts from its 74,000-strong workforce should help cut operating costs by some 1bn euros ($1.35bn; £860m). |
Nokia Siemens has struggled to make profits so its parent firms are eager to distance themselves from it. | Nokia Siemens has struggled to make profits so its parent firms are eager to distance themselves from it. |
This might result in shares in the subsidiary being listed on the stock market. | This might result in shares in the subsidiary being listed on the stock market. |
"As we look towards the prospect of an independent future, we need to take action now to improve our profitability and cash generation," Nokia Siemens chief executive Rajeev 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," Nokia Siemens chief executive Rajeev Suri said. |
Mr Suri described the planned layoffs as regrettable but necessary. | |
"We need to take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications market," he said. | |
The firm, which is a joint venture between Finland's Nokia and Germany's Siemens, has said the restructuring program will involve cuts across operations worldwide. |