Telecom giant Nortel to cut 3,200 jobs worldwide
Updated: Wed Feb. 25 2009 12:10:35
ctvottawa.ca
Nortel says it will cut 3,200 jobs world-wide in the next few months as the financially strapped company undergoes restructuring.
Although a company spokesperson says Nortel hopes this will be the total number of layoffs, the company cannot guarantee anything. The layoffs total roughly 10 per cent of Nortel's global workforce and will affect Ottawa employees.
Nortel expects to carry out the job cuts over the next several months. Another 1,800 employees will also be let go as part of reduction plans announced last year, bringing the total number of job cuts to 5,000.
Although there is no word on how many jobs will be lost in the capital, Ottawa offices have been hit with one-quarter of global layoffs in the past, which means the capital could lose 1,200 jobs. Layoffs in Ottawa are expected to start on Thursday, when about 120 employees who work with the now shut-down WiMAX division will be let go.
The company, which filed for bankruptcy protection in January, says it needs to make significant changes to help it restructure in the midst of an unprecedented economic environment.
Nortel CEO Mike Zafirovski says it was a tough decision to make the cuts, but adds they are necessary to help the company emerge from creditor protection.
"There is nothing more difficult than notifying employees, and Nortel is extremely conscious of the personal financial burden this will cause affected employees and their families," Zafirovski said in a prepared statement.
The company also announced Wednesday that the board has cancelled all pay programs that involved stock. In an interview earlier this month, Zafirovski told CTV Ottawa the company's stock is "worthless now and will be forever."
Despite the cutbacks, Nortel says it will continue an incentive program for rank and file employees who excel at day-to-day work.
Updated: Wed Feb. 25 2009 12:10:35
ctvottawa.ca
Nortel says it will cut 3,200 jobs world-wide in the next few months as the financially strapped company undergoes restructuring.
Although a company spokesperson says Nortel hopes this will be the total number of layoffs, the company cannot guarantee anything. The layoffs total roughly 10 per cent of Nortel's global workforce and will affect Ottawa employees.
Nortel expects to carry out the job cuts over the next several months. Another 1,800 employees will also be let go as part of reduction plans announced last year, bringing the total number of job cuts to 5,000.
Although there is no word on how many jobs will be lost in the capital, Ottawa offices have been hit with one-quarter of global layoffs in the past, which means the capital could lose 1,200 jobs. Layoffs in Ottawa are expected to start on Thursday, when about 120 employees who work with the now shut-down WiMAX division will be let go.
The company, which filed for bankruptcy protection in January, says it needs to make significant changes to help it restructure in the midst of an unprecedented economic environment.
Nortel CEO Mike Zafirovski says it was a tough decision to make the cuts, but adds they are necessary to help the company emerge from creditor protection.
"There is nothing more difficult than notifying employees, and Nortel is extremely conscious of the personal financial burden this will cause affected employees and their families," Zafirovski said in a prepared statement.
The company also announced Wednesday that the board has cancelled all pay programs that involved stock. In an interview earlier this month, Zafirovski told CTV Ottawa the company's stock is "worthless now and will be forever."
Despite the cutbacks, Nortel says it will continue an incentive program for rank and file employees who excel at day-to-day work.
