Nokia Siemens to slash 5,700 jobs

Nokia Siemens Networks is to cut up to 5,700 jobs from its 64,000 workforce.

The move is part of a drive to save £450 million from the joint venture which provides mobile, fixed and converged network technology.

The company is looking to cut spending in IT, property and general and administrative expenses. Nokia Siemens Networks operates in 150 countries and the company said the job losses would not be evenly spread across its operations.

The company also warned of a major derive to reduce its own procurement costs. "In addition to the operating expense and production overhead savings, Nokia Siemens Networks will target an annual reduction in product and service procurement costs related to cost of goods sold that is substantially larger than the targeted €500 million (£450 million) in operating expenses and production overhead reductions," it said.

The company is to reorganise into three new divisions:

* Business Solutions, which will focus on helping customers generate new revenue and deliver faster time to market for end-user services

* Network Systems, which will focus on providing both fixed and mobile network infrastructure, including the company's Flexi base stations, core products, optical transport systems, and broadband access equipment.

* Global Services, which will offer outsourced support and management of customers' networks.

Nokia Siemens Networks will also look for partnerships and acquisitions, according to Mika Vehvilainen, chief operating officer. The Company already has a range of partnerships, including with Juniper Networks in the Carrier Ethernet transport arena.