Nokia Siemens Networks to Cut 9,000 Jobs

The cuts will include 2,900 jobs in Germany, and up to 1,700 in Finland, said the group, a joint venture between Finland's Nokia Corp. and Germany's Siemens AG. The layoffs were aimed at reaching an annual savings target of 1.5 billion euros ($2 billion) by the end of 2010.

Nokia's share price fell 1.5 percent to 18.60 euros ($25.32) in early afternoon trading in Helsinki, while Siemens shares were down 0.75 percent at 90.44 euros ($123.12).

The two companies jointly employ some 60,000 people in their network units.

"This is a necessary step to build a Nokia Siemens Networks able to compete now and in the future," the group's chief executive, Simon Beresford-Wylie, said.

"It is our responsibility to create a winning company that can provide strong future opportunities for employees, adequate returns for our shareholders, and cost-competitive products, services and solutions for our customers."

Beresford-Wylie said that although more than 60 percent of company employees work outside Finland and Germany, the two countries will remain "major centers of employment for Nokia Siemens Networks."

Last year, Nokia and Siemens said they expected to reduce by up to 15 percent the number of workers in their network operations once the joint venture was formed.

Last month, Nokia Siemens Networks downgraded its earlier forecast for 2007, saying it expected "very slight" market growth and that in recent months "there has been a narrowing of visibility and indications of a slowdown in spending in some regions."

Nokia, the world's largest mobile phone maker and Siemens, Europe's largest electronics and electrical engineering company, formed the 50-50 joint venture to produce equipment that mobile services, such as T-Mobile, Vodafone or O2, need to provide more content quickly to subscribers.