Nokia Siemens Networks, which this week ended talks to sell a stake to buyout firms, needs to slash jobs to gain the option of independence as competition with rivals including Huawei Technologies Co. intensifies. The phone equipment venture between Nokia Oyj and Siemens AG generated sales of about $254,000 per employee last year, 19 per cent less than larger rival Ericsson AB, based on numbers from the companies' financial reports. The figure for both manufacturers is sinking as selling prices for equipment such as base stations and packet-switching networks decline.
Nokia Siemens revealed that it plans to improve its competitiveness as a standalone entity, while announcing the end of talks over a stake sale. The Espoo, Finland-based venture, which has been unprofitable for all but one quarter since it started in April 2007, has increased its headcount to about 73,000 from about 60,000 after additions for outsourcing and the acquisition of a Motorola Solutions' unit. In Germany alone, Nokia Siemens has almost 10,000 workers.
