Nortel Slashes Jobs
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.
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— Dan Jones, Site Editor, Unstrung