Nokia Siemens to cut 17,000 jobs worldwide

Major restructuring to focus on mobile broadband is underway

Network equipment maker Nokia Siemens Networks (NSN) is to undergo a mammoth restructuring programme, which will see it shed 17,000 employees across the globe, as it refocuses on the mobile broadband market.

The move comes amid intense competition from Chinese rivals ZTE and Huawei.

"We believe that the future of our industry is in mobile broadband and services, and we aim to be an undisputed leader in these areas," said Rajeev Suri, chief executive officer of Nokia Siemens Networks.

The company will aim to shave €1bn off its operating costs by the end of 2013, mainly by cutting more than 17,000 jobs - about 23 per cent of its total workforce.

While it's important that the company becomes trimmer and more adaptable to survive in a highly competitive market, there is always a risk that job losses on such a massive scale will damage morale, said Bettina Tratz-Ryan, a research vice president at analyst firm Gartner.

"NSN has given itself a two-year time frame to complete this. During that time, the market is going to change dramatically, so it needs to make sure the restructuring programme doesn't make it lose focus," she said.