Nortel Slashes Jobs

Nortel Networks Ltd. said this morning that it plans to cut 2,900 jobs in the next two years as it aims to become a leaner company that focuses on high-growth markets such as next-generation CDMA wireless equipment and cuts back on older GSM cellular technology.

The Canadian networking vendor says it will cut 70 percent of the positions this year and the rest in 2008. The company also plans to move around 1,000 positions to "lower-cost" locations, Toronto-based Nortel said in a statement. The cuts, which represent around 8.5 percent of the workforce, could reduce expenses by as much as $400 million a year, the company said in a statement.

Nortel is the second major wireless company planning job cuts this year. Motorola Inc. (NYSE: MOT) said in January it plans to reduce its headcount by 3,500 after a disappointing performance for its handset division in the fourth quarter of 2006. (See Motorola Profit Falls 48%.)

The firm will also reduce the amount of property it holds around the world. The cost of these actions could be as high as $390 million, with about $300 million related to staff reductions and the rest to real estate transactions.

Get the whole story at Unstrung.

— Dan Jones, Site Editor, Unstrung

materialgirl 12/5/2012 | 3:15:09 PM
re: Nortel Slashes Jobs CSCO is growing and NT is shrinking. This tide seems a bit narrow.
Cromwell 12/5/2012 | 3:15:09 PM
re: Nortel Slashes Jobs Not all analysts put them in the rising tide category:


Page down to the bottom...

SolitonWave 12/5/2012 | 3:15:04 PM
re: Nortel Slashes Jobs ..that is the question.
"What are we doing here? Is there a purpose, a meaning?" If there are no answers then something should be done to end up with this misery, for god's (aka market's) sake...
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