We welcome you to JobBank USA and hope your job hunting experience
is a pleasant one. We hope you find our resources useful.
February 7, 2007
Nortel Networks Corp. said Wednesday that it is planning to cut 2,900 jobs in 2007 and 2008, with 70 percent of the cuts taking place this year.
It was not immediately known how many of the cuts, if any would come from the Canadian telecom equipment maker's U.S. headquarters in Richardson, said Nortel spokesman Jay Barda.
Nortel has about 4,000 employees in the Dallas-Fort Worth area. The company has about 33,000 employees globally.
The company also said it plans to shift about 1,000 positions from higher cost locations to lower cost operations. About 40 percent of those moves will take place this year.
In addition, Nortel plans to reduce its global real-estate portfolio by more than 500,000 square feet of space in 2007. Nortel occupies about 1.2 million square feet of real estate in the Dallas-Fort Worth area -- including about 850,000 square feet of real estate the company owns, consisting of its tower building and labs in Richardson, Barda says. The rest of the space is leased.
"We are transforming Nortel, and are focused on building a highly competitive organization that drives innovation and profitable growth," said Mike Zafirovski, Nortel's president and chief executive officer, in a statement.
Nortel said the reductions would save the company about $400 million a year, with about half of that savings to be realized this year.
The cost of the restructuring could reach as high as $390 million, with about $300 million of that related to the job reductions and the other $90 million related to the real estate actions.
The company expects about 75 percent of the costs to be recorded as charges to the 2007 statement, with much of the remainder to be recorded as charges in 2008.
In June 2006, Nortel (NYSE: NT) launched its third round of job cuts, saying it would cut about 1,900 jobs globally, and add about 800 new positions in operations centers in Mexico and Turkey.
Barda said if there were cuts in Richardson stemming from that reduction, they were minimal.
Email This Page!