Nokia Siemens Networks has announced it is to lay off some 350 staff in China, the company revealed to the Global Times yesterday.
"The restructuring process, which began on Monday, involves many departments," Nie Ying, a communications executive with Nokia Siemens, told the Global Times yesterday.
Nie said the China workforce reduction is part of the company's global job-cutting measures. "So far, we're not sure whether there will be another round of job cutting this year," she said.
The joint venture between Nokia and Siemens announced last November that the company planned to axe its global workforce by approximately 17,000, almost a quarter of its total staff, by the end of 2013 to "improve its competitiveness and profitability."
The company's net sales reached over 14 billion euros ($18.66 billion) in 2011, an increase of 11 percent year-on-year. Its sales in China reached 1.47 billion euros last year, up by 1 percent, according to the company's 2011 financial report.
"The cuts are to make the mobile phone network equipment business more profitable and to provide more flexibility for the company to engage in the smartphone market," Zhang Yi, CEO and chairman of Guangzhou-based IMEDIA Research Group, told the Global Times yesterday.
Zhang also noted that because the company is anticipating fiercer competition worldwide from Chinese rivals, such as ZTE Corp and Huawei Technologies, "it makes sense that the company wants to cut workforce costs to get prepared."