Nortel Networks slashes jobs as Q4 loss widens

Nortel Networks will cut 2,100 jobs, about 6% of its work force, as it reported its fourth-quarter losses had widened, sending its shares tumbling, an Associated Press report said.

The Associated Press report said the Canadian telecommunications equipment maker reported a loss of $844 million, compared with a loss of $80 million a year earlier.

The company's stock shed nearly 13%, losing $1.46 to $9.99 in afternoon trading, the report said.

The company took $38 million in charges associated with its restructuring programs, compared with $29 million, a year earlier. It recorded a $1.06 billion charge related to changes in its Canadian tax profile.

Nortel said it plans to cut about 2,100 jobs globally and will shift about 1,000 additional jobs to lower-cost countries in Asia and Europe. The company has just over 30,000 employees now, down from almost 100,000 before the tech bust in 2000.

The Associated Press report further quoted Mike Zafirovski, Nortel's president and CEO, as saying that the company faces a 'challenging environment' and said the economic slowdown in the US is affecting business.