Nortel to Cut 3,200 More Jobs
Nortel announced it intends to reduce its workforce by an additional net 3,200 positions worldwide. The company expects to carry out these reductions during the next several months in accordance with local country legal requirements. These new reductions are incremental to the 1,800 remaining reductions from previously announced plans that require completion.
"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," said Mike Zafirovski, Nortel president and chief executive officer. "Nortel is a company driven by people and innovation. But with the unprecedented economic environment and resultant impacts on revenues, significant changes are required to regain our financial footing. Tough decisions are being made to restructure the company and work towards a successful emergence from creditor protection."
As previously announced, Nortel is in the process of preparing a comprehensive business and financial restructuring plan with the goal of emerging from the creditor protection process as a more focused and competitive company. The company is working with several parties, including its creditors, to define the best plan forward to present to the courts. Nortel is taking the initial steps in a disciplined fashion to ensure it has appropriate resources to fully serve its customers with leading solutions and innovations.
"We remain deeply committed to our customers and are staffed to meet their needs as we take the necessary actions to strengthen the company," said Zafirovski. "Throughout the process, we are committed to maintaining current high service levels and appropriate innovation investment levels to ensure best in class technology continues to be available to Nortel's global customer base."