After suffering yet another weak quarter in Q3 09, Nokia Siemens Networks' (NSN) recently appointed CEO Rajeev Suri--who replaced Simon Beresford-Wylie when he resigned in September--thinks it's time to make some changes to how it operates.
As part of a plan that the company says will improve its financial performance and pave a path to future growth, NSN has proposed four major changes: reorganizing its business units; reducing operating and production overhead costs; ongoing purchasing savings; expanded partnering with other vendors; and making acquisitions to complement its product portfolio and address specific customer needs.
Beginning in January, NSN will consolidate its five business units into three units under the guise of Business Solutions, Network Systems, and Global Services. NSN has assigned three existing company department heads to run each unit. Jurgen Walter, who currently oversees NSN's Converged Core business unit, will run the Business Solutions organization; Marc Rouanne, who was running NSN's Radio Access Business unit will lead the Network Systems unit; and Ashish Chowdhary, currently leading NSN's Services business, will oversee the company's Global Services unit. In addition to taking on these new roles, Rouanne and Walter will become part of NSN's executive board, while Chowdhary, who is already a member of the board, will continue to serve on the board in his new position.
Of course, the company-wide reorganization comes with the cost of job cuts. Looking to cut $732 million in operating costs by 2011, NSN estimates that after it conducts a global personnel review it could cut between 7-9 percent of its 64,000 employee workforce.
- see the release here
Nokia Siemens Networks' losses continue in Q3
Nokia, Siemens search for exit out of NSN venture
Nokia Siemens Networks takes hybrid road to wireless backhaul
NSN: Beresford-Wylie out, Rajeev Suri in as CEO