UPDATE 4-Nokia Siemens to cut 5,800 jobs, save $1.5 bln

* Seeks to save 500 mln euros in fixed costs by end-2011

* Wants "substantially" greater savings in procurements

* Some 7-9 pct of staff could be affected

* Revamps organisation to focus better on services

(Adds CEO, German union, fresh analyst quote, updates shares)

By Brett Young and Tarmo Virki

HELSINKI, Nov 3 (Reuters) - Struggling telecom equipment maker Nokia Siemens Networks [NSN.UL] aims to cut up to 5,800 jobs and save more than 1 billion euros ($1.48 billion) to stay competitive in the cut-throat market.

The company will revamp its operations hoping to benefit from its stronger position in offering services to operators.

Telecom gear makers have been hit hard by the recession, which crimped operator spending, and by tough competition from China's Huawei [HWT.UL] and ZTE (0763.HK).

"To match the commercial flexibility demonstrated by Chinese vendors, NSN had to cut back its production, R&D and overhead costs," said Pal Zarandy, partner at telecoms consultancy Rewheel.

Last month market leader Ericsson (ERICb.ST) reported third-quarter earnings below expectations and declined to forecast an upturn. [ID:nLM420454].

NSN, a joint venture of Nokia (NOK1V.HE) and Siemens (SIEGn.DE), said it aimed to cut 500 million euros in annual fixed costs by the end of 2011, putting up to 5,800 of the firm's 64,000 staff at risk.

Workers in Germany and Finland protested against the plan.

"Shrinking more than the market is no honour for the top management," said Georg Nassauer, the head of works council of Nokia Siemens in Munich.

"With this kind of restructuring we are not gaining any customer or order. It takes the power out of the company," he said in a statement.

Nokia shares were little changed, off 0.9 percent at 8.64 euros at 1431 GMT.