Feeds

Nortel to axe 1,100 jobs

Cost-cutting

Build a business case: developing custom apps

Nortel is to axe 1,100 jobs as part of a range of measures to cut costs and increase productivity. The telecoms equipment maker didn't specify where the axe would fall except to say that the job cuts would be made "globally".

The Canadian networking giant said it plans to ditch around 1,900 positions in all. At the same time it will create some 800 positions, giving a net reduction of around 1,100. It also plans to shut a number of sites.

"The long-term plan is to consolidate more than 100 sites globally into fewer operations centres of excellence focused on delivering engineering, product and technical support, order management, purchasing and data analysis, among other functions," Nortel said in a statement today.

The total cost of the job losses and associated restructuring is thought to be in the region of $100m over the next two years.

As well as axing jobs, Nortel is also overhauling its pension plan in a bid to "control costs and align with industry-benchmarked companies". These changes are expected to save the firm around $100m, rising to more than $400m by 2012.

Today's announcement is the latest in a series of actions Nortel is taking to achieve "a targeted operating-margin expansion in excess of $1.5bn in 2008". ®

Boost IT visibility and business value

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Cutting cancer rates: Data, models and a happy ending?
How surgery might be making cancer prognoses worse
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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?