Nortel to lay off another 3,200 workers

Job cuts are part of restructuring after bankruptcy filing

Update: A Nortel spokesperson for Australia told Computerworld the company will determine local redundancies within 140 days as of May 1.

"There is no actual date as yet... We want to make the decision as swift as possible for any affected employees," the spokesperson said.

The company could not release local staff numbers

Nortel Networks Wednesday said it will lay off 3,200 workers in addition to 1,800 layoffs previously announced as it undergoes a restructuring that is part of its Chapter 11 bankruptcy filing in the US and a similar creditor protection filing in Canada.

The network equipment provider said it could not detail in what locations the layoffs will occur.

In all, the 5,000 combined layoffs will reduce Nortel's work force by 16 percent, from about 30,000 to 25,000.

A spokesman said Nortel could not promise that today's layoffs will be all that will be done for the foreseeable future. "We're still working on a business plan in our restructuring process," he said in an interview. "We'll keep you informed."

CEO Mike Zafirovski, in a statement, said, "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. 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."

Zafirovski also sought to assure switch and routing customers that Nortel has the remaining staff "to meet their needs." He added, "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."

Nortel also said its board had decided not to approve any bonuses for 2008, but would continue using the process in 2009 on a quarterly review basis.

-With Darren Pauli

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags nortellay offs

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Matt Hamblen

Computerworld
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?