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03/10/2001
Nortel announce further job losses worldwide
Concern is mounting for jobs at Monkstown as telecoms giant Nortel has confirmed that it is to cut 20,000 jobs as part of a worldwide restructuring programme.
In addition, the company, who also has appointed a new chief executive, has warned that third-quarter losses are likely to amount to billions of dollars – and admitted that they could not make any projection for possible results in the fourth quarter.
Chief Financial Officer Frank Dunn replaces former CEO John Roth, who announced his intention to resign in April of this year. Mr Dunn now takes the helm of Nortel at a time of extreme uncertainty in the economic climate as the acute slowdown in the technology sector has hit the company hard.
Nortel’s current strategy to regain profitability has seen the hi-tech firm considering a wave of sell-offs, following the sale of its Clarify subsidiary for $200 million in cash. The move comes a year after Nortel bought the customer relations management division for $2.1 billion in stock.
While Nortel has provided no detailed breakdown on the jobs losses, widespread job cuts are continuing to be implemented, and have seen Nortel’s workforce drop dramatically from January’s high of 95,000 following several rounds of redundancies. While 45,000 jobs have currently been retained, it is unclear as to how many of those are guaranteed for the future.
However, if Nortel chooses to go ahead with sales of its subsidiaries, it is thought that at least 10,000 workers could be assured of permanent positions. (CL)
In addition, the company, who also has appointed a new chief executive, has warned that third-quarter losses are likely to amount to billions of dollars – and admitted that they could not make any projection for possible results in the fourth quarter.
Chief Financial Officer Frank Dunn replaces former CEO John Roth, who announced his intention to resign in April of this year. Mr Dunn now takes the helm of Nortel at a time of extreme uncertainty in the economic climate as the acute slowdown in the technology sector has hit the company hard.
Nortel’s current strategy to regain profitability has seen the hi-tech firm considering a wave of sell-offs, following the sale of its Clarify subsidiary for $200 million in cash. The move comes a year after Nortel bought the customer relations management division for $2.1 billion in stock.
While Nortel has provided no detailed breakdown on the jobs losses, widespread job cuts are continuing to be implemented, and have seen Nortel’s workforce drop dramatically from January’s high of 95,000 following several rounds of redundancies. While 45,000 jobs have currently been retained, it is unclear as to how many of those are guaranteed for the future.
However, if Nortel chooses to go ahead with sales of its subsidiaries, it is thought that at least 10,000 workers could be assured of permanent positions. (CL)
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