Nokia Siemens Networks is cutting 17,000 jobs – 23% of its workforce – in an effort to save €1 billion over the next two years, the company announced today.

The network infrastructure company says it is focusing its business on mobile broadband equipment. The job cuts will affect areas of Nokia Siemens’ business that do not support this strategy. These areas will be ""divested or managed for value", the company said.

"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," said Nokia Siemens’ CEO Rajeev Suri in a statement. "These planned reductions are regrettable but necessary – and it is our goal to make them in a fair and responsible way, providing the support we can to employees and communities."

The company will also pursue cost reduction in real estate, IT, procurement costs, as well as administrative expenses for the financial savings, as well as reducing the number of suppliers it uses.

Nokia Siemens is involved in O2’s trial of LTE mobile broadband in central London, supplying the base stations as well as managed services and network optimisation.