Nokia Siemens and Johnson & Johnson announce thousands of job losses
One of the world’s largest telecommunications equipment suppliers, Nokia Siemens Networks, is to lay off almost 6,000 workers globally in a bid to cut annual costs by €1 billion.
The company, which is a joint venture between Finland’s Nokia Corp. and Siemens AG of Germany, is struggling amid tough competition and the global recession which has hit all telecom equipment firms.
The 5,700 job losses represent around 9% of the company’s workforce and in a statement the company said: “As part of this effort, the company will also conduct a global personnel review which may lead to headcount reductions in the range of about 7-9% of its current approximately 64,000 employees.”
The company makes about 25% of all mobile phones sold worldwide.
In the meantime, US healthcare firm Johnson & Johnson is set to axe between 6 and 7% of its global workforce in order to reduce costs.
The company, which employs 118,700 people, said it hopes to save up to $900 million (£551 million) next year and the plans will also see cuts in management staff.
In a statement, chief executive Bill Weldon, said: “These types of changes are difficult under any circumstances, and will have a very personal impact on people who have been dedicated to the mission of Johnson & Johnson.”
The company hopes the plans will ultimately save it $1.7 billion by 2011.
Last month, the New Jersey-based firm reported worse-than-expected third-quarter sales, blaming a slump in demand for consumer products.
The news comes on the same day that banking giant HSBC announced plans to axe 1,700 UK jobs.