Nokia Siemens to Reorganize Business Units, Reduce Headcount

Nokia Siemens Networks has announced its plan to improve financial performance and return to growth. The plan includes reorganizing the company’s business units to better align with customer needs; extensive operating expense and production overhead reduction, including a global personnel review; ongoing purchasing savings; expanded partnering to ensure a full portfolio of world-class products and services; and potential acquisitions where assets would add scale to existing product areas or customer relationships.

"As our customers make purchasing decisions, they want a partner who engages in issues well beyond a traditional discussion of technology,” said Rajeev Suri, Chief Executive Officer of Nokia Siemens Networks. "Business models, innovation, growth and transformation are now very much front and center when it comes to the selection of a technology partner – and our planned new structure will position us well in this changing market.”

The Company’s five business units are planned to be realigned into three, each targeting a specific customer focus area. The planned new business units, which are expected to come into effect on January 1, 2010, are Business Solutions, Network Systems, and Global Services.

The operating expense and production overhead savings are expected to come from a wide range of areas, including real estate, information technology, site optimization, strategic workforce rebalancing, and overall general and administrative expenses. As part of this effort, the company will also conduct a global personnel review which may lead to headcount reductions in the range of about 7-9 percent of its current approximately 64,000 employees.

www.nokiasiemensnetworks.com