Offically only 50
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Mitel cuts 50 jobs, telecom rebound seen
By Ottawa Business Journal Staff
Thu, Sep 11, 2003 8:00 AM EST
Terry Matthews' venture Mitel Networks cut 50 jobs this week in response to persisent weakness in the market for its telecom products.
The cuts represent about five per cent of the company's staff, leaving Mitel with a workforce of 950.
When Matthews bought the company in December 2000, it employed close to 2,000.
Staff facing the axe this time around as the company streamlines its operations to cut costs are concentrated in the IT and finance departments.
However, management believes the worst is over. Revenues in the current quarter are expected to grow by a modest two to three per cent. President Paul Butcher said he expects the pace to pick up in the next quarter and yield double-digit revenue growth.
He added that the slump in telecom spending has hit bottom and the sector is ready for an extended recovery.
