Nortel Networks to cut 3,500 jobs

Manufacturing News, Source : TheManufacturer.com
Published : 19 Aug 2004 15:09

Nortel Networks, one of the world’s largest telecommunications equipment suppliers, announced plans to cut about 3,500 jobs, or 10 percent of its workforce, in a bid to cut costs.

Nortel estimates that the cuts will save the company between $450 million and $500 million annually.

“In an increasingly cost-competitive environment, we are taking the steps necessary to continue to grow market share and, together with the actions announced today, are taking the important steps to improve our profitability and cash generation,’ said Bill Owens, Nortel Networks’ president and CEO, in a statement. “I am saddened that these actions will necessitate a decrease in our workforce. Nortel Networks employees have demonstrated remarkable loyalty during this challenging period. I recognize the impact these measures will have on these fine people who have served Nortel Networks well.”

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