Nortel Details 3,250 Layoffs

Author:
Publish date:
Updated on

Nortel Networks Corp. lowered its projected layoff total from 3,500 to 3,250 and offered more details, AP reported.

The struggling telecommunications-equipment supplier said 1,400 of the cuts will come in the United States by June, according to AP.

The vendor will also cut 950 jobs in Canada; 650 jobs in Europe, the Middle East and Africa; and 250 elsewhere, according to AP.

Nortel also intends to trim some 2 million square feet of occupied real estate by the end of 2005, AP reported.

"The decisions made to reduce our employee community and refine operational efficiencies have been undertaken in a very considered way," CEO Bill Owens told AP. "Our work-force actions are focused to disproportionately protect customer- and sales-facing roles, as well as to continue our focus on new, innovative solutions."

The company has cut more than 60,000 jobs, or almost two-thirds of its work force, over the past three years, and it expects this latest round to help reduce annual expenses by $450 million-$500 million.

Related