Nokia Siemens plans reorganization and job cuts

Aiming to return to growth as soon as possible, Nokia Siemens Networks has outlined a plan to improve its improve financial performance. For one, this goal will see the company's five business units being realigned into three groups which are expected to become a reality on January 1st, 2010. The upcoming trio includes: - Business Solutions, focusing on helping customers generate new revenue and differentiate from the competition by providing a faster time to market for end-user services, enhancing billing and charging capability, automating and simplifying processes, and tapping into rich subscriber data. This group will be led by JÃŒrgen Walter, currently head of the company’s Converged Core business unit. - Network Systems will be headed by Marc Rouanne, the leader of the Radio Access business unit, and will provide both fixed and mobile network infrastructure. - Global Services will focus on helping customers improve operational efficiency through outsourcing, supporting and managing their networks with robust customer care offerings, and ensuring fast and cost-effective implementation of new networks and network upgrades. Ashish Chowdhary, now head of the Services business, will be chief at Global Services. Beside the organization, the company is set on cutting operating expenses and production overheads by €500 million before the end of 2011. Several measures will be implemented for this but what's really worth mentioning is the 'global personnel review' program which will see between 4480 and 5760 employees getting the pink slip. Nokia Siemens Networks will also reduce its annual product and service procurement costs by a sum significantly larger the €500 million slash in operating expenses.

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