Nokia Siemens Networks, the Finland-based telecommunications equipment maker, will lay off 17,000 employees, about 23% of its global workforce, it announced this morning.
In a press release, the company said that the layoffs are part of an "extensive" restructuring plan that will save the company EUR 1 billion. The company, a joint venture between Finland's Nokia and Germany's Siemens formed in 2007, will re-focus its strategy on becoming the "undisputed leader" in mobile connectivity and services. "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 Chief Executive Rajeev Suri in a statement.
The restructuring will have wide implications. It will "eliminate" its current organizational structure and consolidate offices. NSN had about 74,000 global employees as of Nov. 1, a company spokesperson said. The geographic distribution of the company's workforce is:
India: 10,900, or 14.7%
China: 10,000, or 13.5%
Brazil: 9,750, or 13.2%
Germany: 9,100, or 12.2%
Finland: 6,900, or 9.3%
United States: 3,850, or 5.2%
United Kingdom: 1,300, or 1.7%
The 17,000 layoffs will be completed by the end of 2013.
NSN says that it will work with employee representatives to work out severance packages that adhere to local laws, which in Europe tend to be generous compared to the U.S. Nokia announced the reduction of 4,000 jobs in April.
Write to Joseph Walker at Joseph.Walker@dowjones.com