Nortel to slash 3,200 jobs worldwide
Telephone equipment giant Nortel Networks Corp on Wednesday announced plans to cut 3,200 jobs worldwide as it struggles to emerge from bankruptcy protection, dpa reported.
The 114-year-old Canadian company filed for bankruptcy protection in January, and received an extension of that until May 1.
Nortel said the job cuts would take place over several months and are in addition to 1,800 workforce reductions already announced. The company also won't pay any bonuses under its incentive plan for last year.
"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," CEO Mike Zafirovski said.
Nortel has lost about 7 billion dollars since 2005 as it made bad bets on developing cellphone and other telecommunications technologies that were not widely adopted in the market.