Or maybe that’s axes. Nokia-Siemens Networks said today that it will be cutting 28% of its workforce. That’s 17,000 paychecks worldwide that are now highly endangered, although the downsizing will take place over the next 8 quarters. But 28%? That’s just brutal.
The joint venture has been under pressure for some time, burning cash and dragging down Nokia’s overall results. The cost savings effort is part of a plan to cut €1B in annual operating expenses.
Other pieces of that cost reduction plan include all sorts of goodies: organizational streamlining; lower real estate, IT, procurement, administrative expenses; a reduction in suppliers, site consolidation; elimination of the company’s matrix organizational structure, transfer of activities to global delivery centers, consolidation of certain central functions, cost synergies from the integration of Motorola’s wireless assets, efficiencies in service operations, company-wide process simplification, … Well you get the idea, someone let a team of MBAs trot out their full repertoire of synergy categories.