Nokia Siemens Networks, the world’s No. 2 maker of mobile telecoms network equipment, and Tellabs unveiled plans to jobs as part of cost-cutting plans. NSN plans to cut approximately 1,200 jobs in Finland and 2,900 in Germany, while Tellabs plans to cut 530 jobs.
In November, Nokia Siemens Networks said that it will eliminate almost 23% of its workforce in a major restructuring aimed at streamlining operations and concentrating on the mobile network infrastructure and services market. The restructuring will result in 17,000 job cuts around the world by the end of 2013, that will save the company about $1.3 billion by eliminating its matrix organizational structure, increasing the use of global delivery centers and consolidating sites.
Finland and Germany are NSN home countries.
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At Tellabs, which recently reported a steep drop in fourth quarter revenues to $317 million in 2011, compared with $410 million in the year-ago quarter, the jobs cut will impact its facilities in Petaluma, Calif.; Vancouver; Bangalore, India; and Karachi, Pakistan.
“In a climate of economic uncertainty, Tellabs needs to align expenses with revenue,” said Rob Pullen, Tellabs CEO and president, in statement. “Unfortunately, our restructuring will affect about 530 people. We will reduce expense and stop new development work on the Tellabs SmartCore 9100 LTE product, while continuing to support Tellabs SmartCore 9100 WiMAX customers,” he added.
Tellabs had announced last July plans to cut 330 jobs, and noted that the current restructuring may continue into early 2013. Tellabs noted that it will restructure its business and recognize a pretax charge, substantially all of which is expected to be incurred in the first quarter of 2012, currently estimated at $107 million.
