The move is an attempt to save the company €1 billion, (£863 million) a year

Nokia Siemens Networks is to slash 17,000 jobs in a bid to save €1 billion, (£863 million) a year, the company said on Wednesday.

The struggling telecoms gear maker is now set to focus on mobile broadband gear and services.

The venture of Finnish group Nokia and German conglomerate Siemens has struggled for profitability since it was formed in 2007 because of tight spending by operators and fierce competition from rivals Huawei and Ericsson.

In the third quarter, the venture made an underlying operating profit of €6.0 million on sales of €3.41 billion.

The venture raised €1 billion to finance the restructuring in late September from its parents, which both put in an additional €500 million. Nokia Siemens Chief Executive Rajeev Suri said they would not need any further financing at this stage.

The parents have said they want to make the venture more independent, seeing a listing as one of the options within a few years.

"As we look towards the prospect of an independent future, we need to take action now to improve our profitability and cash generation," Suri said in a statement.

As its business focus shifts to mobile broadband, the company will exit several smaller businesses mostly related to fixed line telecommunications.

Suri said the company will focus on where it has scale adding, "We are a strong Number 2 in mobile broadband."

Shares in Nokia were 1.3 percent firmer at 4.24 euros by 1:42 p.m. (British time).