Nokia Siemens to cut 17,000 jobs, 23% of its workforce

The struggling telecoms equipment maker Nokia Siemens Networks is cutting 17,000 jobs, 23% of its workforce, according to BBC News.

The losses from its 74,000-strong workforce should help cut operating costs by some 1bn euros ($1.35bn), the company said.

The loss-making venture, owned by Finland's Nokia and Germany's Siemens, has faced stiff competition from rivals such as Huawei and Ericsson.

The owners are considering listing the venture as a separate company.

"This is a big move. I believe the goal is an Initial Public Offering [flotation]. That cannot be done with the current structure and operation models," said Jari Honko, an analyst at Swedbank.

Nokia Siemens chief executive Rajeev Suri described the planned layoffs as "regrettable but necessary".

"As we look towards the prospect of an independent future, we need to take action now to improve our profitability and cash generation," Suri said.

The firm, which is a joint venture between Finland's Nokia and Germany's Siemens, has said the restructuring program will involve cuts across operations worldwide.

Shares in Nokia Siemens rose more than 2% to 4.27 euro after the announcement.

Nokia Siemens has been squeezed by market leader Ericsson and increasing competition from Chinese firms Huawei and ZTE.