Feeds

Nortel axes 10,000 more jobs

Posts $19.2bn Q2 loss

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Nortel Networks is to cull 10,000 jobs by the end of September, it announced today.

The massive job cuts are on top of the 20,000 losses announced in April and appeasr to show there is no end in sight as the sector cntinues to suffer.

The cuts are part of a massive restructuring exercise blamed on "significant adjustment" in the global telecoms market.

It seems companies are continuing to cut back on the Net-enabling equipment.

Nortel claims that the cuts will save the company $875 (before tax) a quarter - $3.5 billion a year.

The company also announced today that it had secured an additional $2 billion in funding. It also intends to suspend share dividends to help stem the cash haemmorage in the hope of saving more cash.

In a statement, the said it expects to generate a net loss of $1.5 billion in Q2 on revenues of $4.5 billion.

"Combining the operations outlook for the quarter and the impact of the alignment plan, the company expects a net loss of approximately US$19.2 billion in the second quarter," the company said.

John Roth, president and CEO, said: "Led by the United States, the global telecom industry is undergoing a significant adjustment.

"After several years of capital expansion exceeding the pace of business performance, the capital markets have significantly reduced the flow of funds to service providers.

"In response, service providers have made driving return on invested capital their primary focus. Consequently, new capital expenditures are being curtailed as service providers look to drive further efficiencies from the investments they have already made.

"As a result, we are seeing a very significant reduction in equipment purchases in the second quarter of 2001 compared to the first quarter of 2001 and the second quarter of 2000," he said. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.