Nokia Siemens Networks' Global Cost-Cutting Program Lays off 400 Workers in Finland

Nokia Siemens Networks announced earlier this week that layoffs will begin in Finland by next week, a move that is part of the group’s global cost-cutting program. It’s expected that around 400 workers will be terminated by the end of next week.

In an attempt to streamline operations and boost profits, the wireless network group announced last year that it would be cutting almost a quarter of its workforce, which totals about 17,000 jobs worldwide. This move is in line with aggressive goals to cut annual costs by $1.3 billion by the end of 2013.

The Nokia Siemens Networks, which is a joint venture between Nokia Corp. Finland and Siemens AG of Germany in 2007, has experienced difficulty in generating profit amongst fierce competition in the marketplace. Rivals include Sweden’s Ericsson and China’s Huawei Technologies, in addition to ZTE Corp.

Nokia Siemens also announced last year that the group would be concentrating business efforts in the mobile broadband industry and discontinuing services that were not in line with this new strategic focus.

“Business areas not consistent with the new strategy are planned to be divested or managed for value, and we have already announced the divestment of a number of these business,” said Ben Hunt, Nokia Siemens spokesperson.

In related news, Nokia Siemens Networks is in advanced talks with interested parties including Ericsson AB, Amdocs Ltd. and private-equity firms to sell off the Business Support Systems group, which isn’t generating any profit. Rumors are that the deal is worth $377 million.

Other business lines that have already been sold include fixed line broadband access, which was bought by Adtran Inc. in May, as well as the microwave transport business, which is now owned by DragonWave Inc.

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