Nortel Lowers Q1 Outlook
"We continue to feel the impact of the economic downturn in the United States and are now seeing customers globally assess its effect on their businesses," said John Roth, president and chief executive officer, Nortel Networks. "Reduced and/or deferred capital spending and increased pricing pressure are resulting in lower overall revenues, particularly in the United States."
Nortel Networks has made significant reductions in its employee base and adjusted its supply chain to reflect the current economic environment. The Company has substantially completed the employee related actions announced on February 15, 2001. The full benefit of these reductions is expected to impact the second quarter of 2001. However, due to the market environment, the Company is planning further reductions and now expects an aggregate net reduction, by mid year 2001, of approximately 15,000 from the number of employees at December 31, 2000. Nortel Networks expects to tightly adhere to its cost reduction and business realignment initiatives while driving further improvements in productivity and efficiency despite a difficult economic environment.