Nortel in the poo
5,000 more jobs to go, forecasts slashed again
The worst fears about the health of the networking market were realised last night when Nortel Networks further downgraded its first quarter sales forecasts and announced the loss of a further 5,000 jobs.
The Canadian telecommunications equipment manufacturer now expects revenues in the range of $6.1 billion to $6.2 billion against the $6.3 billion previously predicted. This means Nortel's losses will be up to three times as much as estimated when Nortel issued a profits warning in mid-February.
John Roth, president and chief executive of Nortel Networks, blamed the disappointing results on a downturn in the US economy, which he suggested was spreading globally, and increased pricing pressure.
In the face of these market conditions, Nortel is further expanding its job curing programme and it now expects overall job losses for 2001 to number 15,000 by the middle of the year.
Nortel has abandoned attempts to provide full year predictions of its results saying that uncertainty about how long the US economic downturn will last prevents it providing meaningful figures. ®