HELSINKI--Finnish-German telecom equipment maker Nokia Siemens said on Tuesday that it would reduce its 64,000-strong workforce by seven to nine percent or by 4,500 to 5,800 jobs, in a multi-million cost-cutting drive.

The cost-cutting is to "improve financial performance and return to growth" by reducing $732 million (500 million euros) in annualized operating expenses and production overheads by 2011, the telco said.

"As part of this effort, the company will also conduct a global personnel review, which may lead to headcount reductions of about 7-9 percent of its current 64,000 employees," Nokia Siemens added.

Nokia, the world's biggest mobile phone maker, last month reported its first quarterly loss in a decade partly due to a 908-million-euro impairment charge for goodwill in the Nokia Siemens joint venture.