Nokia Siemens Networks (NSN) is to cut 17,000 jobs – 23 per cent of its global workforce – in an attempt to save €1bn (£860m) annually in costs by 2013. The company has also pledged to focus on end-to-end mobile network infrastructure and services, with a particular emphasis on mobile broadband, and divest of non-core businesses, or manage them for value.

“We believe that the future of our industry is in mobile broadband and services, and we aim to be an undisputed leader in these areas,” says CEO Rajeev Suri. “At the same time, we need to take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications market.

“Our goal is to provide the world’s most efficient mobile networks, the intelligence to maximize the value of those networks, and the services capability to make it all work seamlessly,” said Suri. “Despite the need to restructure parts of our company, our commitment to research and development remains unchanged, with investment in mobile broadband expected to increase over the coming years.”

While most of the cost savings will come from the job losses, or “organizational streamlining” as the company describes it, NSN says it will also target cost savings in areas including real estate, IT, procurement costs, and a significant reduction in the number of suppliers.

Nokia and Siemens were in talks earlier this year to offload a controlling stake in the JV to a private equity consortium, but talks collapsed, and in September, the two companies injected €1 billion into the business. Despite increased revenues in the last quarter, the company posted a €114m operating loss.