Nortel posts $3.41B loss, will cut 1,300 jobs

Nortel Networks announced its third quarter earnings Monday, posting a $3.41 billion loss. The company also said it would cut 1,300 jobs due to the continued economic downturn.

The Canadian equipment maker posted revenues of $2.32 billion, down from $2.71 billion in the year-ago period, and said it was freezing salary increases, cutting some management positions and reviewing its real estate holdings. Nortel said the decline in revenue was due to the challenging economic climate, competitive pressures and lower spending from carriers. Revenues from carrier networks was $822 million, down 24 percent from the third quarter 2007.

The company also revised its full year 2008 outlook because of the economic conditions. Nortel CEO Mike Zafirovski said that dividends on preferred shares would be suspended.

For more:
-see this earnings release
-see this article
-see this WSJ  article

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