By Gustav Sandstrom
Of DOW JONES NEWSWIRES
STOCKHOLM -(Dow Jones)- Network equipment vendor Nokia Siemens Networks said Tuesday it is reorganizing its business and may cut jobs to reduce costs.
The company, a joint venture between Finland's Nokia Corp. (NOK) and Germany's Siemens AG (SI), said it aims to reduce annualized operating expenses and production overheads by EUR500 million by the end of 2011 compared with 2009 through the measures.
In addition, the company said it will also target annual reductions in product and service procurement costs.
Nokia Siemens said it will conduct a personnel review which could lead to a 7%-9% reduction of its global workforce of around 64,000. It said it will also realign its operations into three business units from five right now.
The company also said it will seek to strengthen its business through partnerships and acquisitions.
At 1114 GMT, Nokia shares in Helsinki were down1.7% at EUR8.57, against a 1.8% drop in the wider market.
Company Web site: www.nokiasiemensnetworks.com
-By Gustav Sandstrom, Dow Jones Newswires; +46-8-5451-3099; gustav.sandstrom@dowjones.com