Nortel cuts 2,100 jobs
28 February 2008
Nortel cuts 2,100 jobs
Troubled Canadian kit vendor Nortel Networks is to cut a further 2,100 jobs as its fourth quarter loss widened from $80m in 2006 to $844m in 2007 on the back of a hefty tax charge.
The company said it will also move approximately 1,000 other jobs to higher growth and lower cost geographies. The company expects to save an annual $300m from the restructuring plan.
Revenues for the fourth quarter and full year were $3.2bn and $10.95bn respectively, both down 4 per cent year on year.
Revenue for the Carrier Networks unit in the fourth quarter was down 9 per cent year on year to $1.35bn. However, networks revenue was impacted by the UMTS Access divestiture, which was only partially offset by growth in CDMA and VoIP. Nortel spun off its UMTS network radio business to Alcatel for $320m in September 2006.
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