Nokia Siemens Networks (NSN) has announced a major restructuring in the company to improve its financial performance and return to growth. Skip related content
The company's restructuring includes its business units, operating expenses and production overhead, personnel, partnerships and acquisitions. It also plans to focus on acquisitions and expanding partnerships to meet the evolving customer needs faster and in the most efficient way possible.
It plans to reduce its five business units to three by January 1, 2010, as Business Solutions, Network Systems and Global Services. Jürgen Walter, currently head of the Converged Core unit, will head the Business Solutions unit. Marc Rouanne, currently head of the Radio Access unit, will head the Network Systems unit. Ashish Chowdhary, currently head of the Services business, will head the Global Services unit.
It plans to reduce annualized operating expenses and production overheads by 500m euros by the end of 2011. It plans to cut 7-9% of its global workforce of 64,000 employees. It also plans to reduce its product and service procurement costs, much larger than the targeted operating expenses and production overhead reductions.
Rajeev Suri, chief executive officer at Nokia Siemens Networks, said: "Business models, innovation, growth and transformation are now very much front and center when it comes to the selection of a technology partner. Our planned new structure will position us well in this changing market."
In July, NSN reported a 21% decline in second-quarter revenue to 3.19bn euros ($4.48bn).
