Buyers to boost ?500m savings

16 November 2009

16 November 2009 | Jake Kanter

Telecoms firm Nokia Siemens Networks will enlist procurement to make substantial savings as part of a major cost-reduction programme.

It aims to save ?500 million (£446.9 million) by the end of 2011 by cutting jobs in its 64,000-strong workforce by between 7 and 9 per cent and through the reorganisation of business units. It also expects to save substantially more than ?500 million every year by reducing the cost of goods and services it purchases.

The company, which makes cellular base-stations, networks and infrastructure, hopes to pass the procurement savings on to customers in the form of more competitive prices. A spokesman refused to confirm the precise procurement cost-reduction target, but said the company will work with suppliers to secure savings.

Nokia Siemens Networks' chief executive, Rajeev Suri, said: "As our customers make purchasing decisions, they want a partner who engages in issues well beyond a traditional discussion of technology."

SMnov2009

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