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24 November 2011 | Angeline Albert
Telecoms firm Nokia Siemens Networks (NSN)
aims to reduce its supply base as part of a strategy to cut €1 billion (£861
million) costs from the business by the end of 2013.
In a statement yesterday, the company - a
joint venture between Siemens and Nokia - announced large restructuring plans,
but would not confirm the scale of its planned reduction in vendors.
In a webcast yesterday, NSN CEO Rajeev Suri
said: “There would be efficiencies in real estate, IT, product and service
procurement costs, general administration costs and reductions in suppliers to
lower costs and improve quality.”
“When we get underway in these areas, we
may find more savings, but at this stage it is €1 billion,” he added. The
company plans to reduce its annual operating expenses and production overheads.
The company also plans to cut 17,000 jobs
by 2013 to boost competitiveness and improve profitability in what it describes
as a “challenging telecommunications market”. The firm would not divulge where
these jobs would be lost, but the restructuring plan does outline the goal to
consolidate sites and central functions. The telecoms infrastructure provider
currently employs 74,000 staff worldwide.