Nokia Siemens Networks to cut as many as 5,700 jobs

By on November 3, 2009, 3:05 PM
After recording a hefty third quarter loss, Nokia Siemens Networks has announced that it will lay off a significant portion of its global workforce. The company intends to let go between 7 and 9% of its 64,000 workers, for a total elimination of 4,500 to 5,700 jobs. In combination with its "strategic workforce rebalancing," Nokia Siemens will reduce overheads, expand its portfolio and consider acquisitions "where assets would add scale to existing product areas or customer relationships."

The company has been slammed by weakened demand in the recession and said the cost cuts are in response to ''changes in the global economy and competitive environment." Nokia Siemens posted a 21.2% fall in revenue on year in the third quarter, and a 13.7% decline from the second quarter. The company hopes that its restructuring plans will reduce spending by 500 million euros (around $740 million).




User Comments: 12

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Xclusiveitalian Xclusiveitalian said:

9% of your entire workforce is alot of hands to be missing, I don't think thats going to help them in the long run. Sounds like the ones left are going to have alot of extra shoes to fill.

treeski treeski said:

I'm a little confused. It hopes that eliminating 9% of its workforce will cut spending costs by $740M, but over what period of time?

buttus said:

9% is a very significant portion of labour to lay off at one time. Tech has been hit pretty hard by this whole economic downturn. I wonder what the total amounts of lay offs and jobs lost to restructuring through this recession has been?

ElShotte ElShotte said:

I don't know how companies could lay off such significant amounts of employees. If there is a weakened demand for their products, or any other companies' products, it is due to the fact that those 4,500 to 5,700 that get laid off no longer have funds coming in, so they stop spending their money (be it on Nokia products). Now if you count all the lay offs all over, thats a lot of people, and the more they lay off, the less money they (all these companies) make. I think the government should regulate such massive lay offs somehow.

MBK MBK said:

9% is a lot of the workforce to lay off, but if they are making more than they are selling anyway, I don't think it'll harm the company. The recession strikes again!

Good luck to all who are loosing their jobs! (i'm guessing they aint gonna read this, but it's the spirit of the thing)

zaidpirwani said:

Layoffs, Lay offs and more lay offs, there is no end to it, if these big corporations can't open their vaults and cut their employees some slack soon the CEO will need to work in the factory as well. this is not something to be taken seriously, there must be strict layoff regulations and also companies need to think of their workers as well before just stating to fire them only because business is down...

SinOfDeath said:

WOW, so many job cuts now a days! Soon everyone will be out of a job :(

slh28 slh28, TechSpot Paladin, said:

Nokia really need to rethink their business model, they're coming out with smartphones which look like bricks when most people want slim and sleek phones such as an iPhone, Blackberry, etc.

Guest said:

Just to point out to you that this is Nokia Siemens Networks not the phone side of things but the Networks side of things.

freedomthinker said:

Well , just another example of the failing economy , seriously humanity needs something new , money is not the answer anymore ;D . But seriously 9 % , that's screw up . Hope those that will lose their jobs stay safe !

swilllx2p said:

I look in the local papers for jobs about everyday...and seeing how little there is as far as jobs in the paper compared to how huge the number of people getting laid off like this just makes me wonder if all these people will ever get jobs again. On average my local papers have a total of maybe 12 legit jobs, all of which require 2 years + experience and a degree minimum. God help the general labor people that get laid off because your pretty much completely out of luck there. I hope its better in other places then here..

pioneerx01 pioneerx01 said:

I still wonder how can such big companies afford to let go of so many employees at once. I mean if they are not necessary in the future, why were there in the first place. And if they are necessary Other workers will not be happy picking up extra slack, for no raise.

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