Nortel Networks cutting 2,900 jobs
Last Updated: Wednesday, February 7, 2007 | 9:52 AM ET
CBC News
http://www.cbc.ca/money/story/2007/02/07/nortelcuts.html
Nortel Networks said Wednesday it is cutting 2,900 jobs around the world, and will shift another 1,000 positions to countries with lower labour costs.
Nortel said the changes are meant to help it boost its competitiveness and its bottom line.
The company did not offer any immediate details on where the cuts and transfers will take place. The telecom equipment maker said about 70 per cent of the layoffs will happen this year.
Of the positions being transferred to lower-cost locations, Nortel said about 400 of those jobs will be moved this year.
Along with the job cuts, Nortel said it will cut its real estate holdings by more than 500,000 square feet of space this year.
The company said the moves will save it about $400 million US annually, with approximately half of the savings expected to be realized this year.
Nortel said the cuts could cost it as much as $390 million US ― about $300 million US of which relates to severance pay for the workforce reductions, and about $90 million US to the real estate actions.
Nortel had about 94,500 employees at the start of 2001. Since then, the company has gone through several rounds of staff cuts while dealing with a severe downturn in business following the collapse of the internet bubble. It had about 35,370 employees as of the end of 2005 - with 7,775 of them in Canada.
Nortel also told investors that its fourth-quarter revenues are expected to come in around $3.26 billion US, up almost nine per cent from the $3 billion US reported a year earlier.
Last Updated: Wednesday, February 7, 2007 | 9:52 AM ET
CBC News
http://www.cbc.ca/money/story/2007/02/07/nortelcuts.html
Nortel Networks said Wednesday it is cutting 2,900 jobs around the world, and will shift another 1,000 positions to countries with lower labour costs.
Nortel said the changes are meant to help it boost its competitiveness and its bottom line.
The company did not offer any immediate details on where the cuts and transfers will take place. The telecom equipment maker said about 70 per cent of the layoffs will happen this year.
Of the positions being transferred to lower-cost locations, Nortel said about 400 of those jobs will be moved this year.
Along with the job cuts, Nortel said it will cut its real estate holdings by more than 500,000 square feet of space this year.
The company said the moves will save it about $400 million US annually, with approximately half of the savings expected to be realized this year.
Nortel said the cuts could cost it as much as $390 million US ― about $300 million US of which relates to severance pay for the workforce reductions, and about $90 million US to the real estate actions.
Nortel had about 94,500 employees at the start of 2001. Since then, the company has gone through several rounds of staff cuts while dealing with a severe downturn in business following the collapse of the internet bubble. It had about 35,370 employees as of the end of 2005 - with 7,775 of them in Canada.
Nortel also told investors that its fourth-quarter revenues are expected to come in around $3.26 billion US, up almost nine per cent from the $3 billion US reported a year earlier.
