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November 25, 2011

Details of Nokia Siemens cull revealed

A leaked Nokia-Siemens memo has outlined what parts of the Nokia Siemens business will be under the hammer following the company’s restructuring announcement.

By Allan Swann

An embarassing memo has been leaked which details which parts of the Nokia-Siemens’ business will be culled following the company’s announcement that it was embarking on a major restructuring.

Thursday’s announcement saw Nokia Siemens announce that it would be moving its focus to mobile networks. It also announced that it would be culling 23% of its workforce (17,000 staff) and shaving £1bn in costs off the company by 2013.

Mobile Europe is reporting that it has obtained a leaked memo that suggests exactly which parts of the company are under the axe.

The memo states that all ‘non-core’ elements are under threat, including: "perfect voice (fixed-line VoIP), broadband access, WiMAX, narrowband, carrier Ethernet, business support systems (BSS), and communications and entertainment solutions (CES) – will be targeted for exit (possibly through divestment) or put in maintenance mode."

Nokia Siemens Rajeev Suri has been under pressure to make the joint venture profitable.

"We are the first company to decide to focus on this sector (mobile broadband) while others remain committed to that [end to end approach]. The industry does not any longer allow for end to end players to be successful. So this give us a clear opportunity to differentiate," he said.

The leak is the latest in an embarrassing series of incidents for the joint venture company, which has seen both parent companies struggle. CBR covered the initial announcement here, and the analyst response here.

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