Nokia Siemens Networks mulls dramatic downsizing - report

More than one in six staff could go under plans currently being discussed, according to Bloomberg

Nokia Siemens Networks is considering slashing its headcount by almost a fifth to boost profitability, according to reports.

The network equipment maker, which competes with the likes of Ericsson, Huawei and ZTE, is discussing a scenario that would see its workforce shrink from 50,500 to 42,000 by the end of 2014, Bloomberg reported.

The cuts, which represent 17 per cent of the total workforce, could come through selling or shutting down plants and outsourcing manufacturing, the report said, citing three people familiar with the matter. Talks with contract manufacturers are underway, it added.

Nokia Siemens Networks was today renamed Nokia Solutions and Networks after its full takeover by Nokia was completed. Nokia announced a deal to acquire joint venture partner Siemens' stake for $2.3bn in June in a move designed to boost its presence outside its struggling mobile phone business.

The Bloomberg report stressed no final decisions have been made and that Nokia would have to firm up any plans as the new full owner.