Days after Siemens announced plans to cut some 3,000 workers, telecom networking vendor Nortel said it will cut 2,100 jobs as part of its turnaround efforts. Nortel reported a fourth quarter net loss of $844 million, or $1.70 a share, compared with an $80 million loss this time last year. Revenue fell 3.7 percent for the quarter to $3.2 billion, while the company had expected flat revenue with $100 million wiggle room.
The job cuts constitute a 6.2 percent reduction in its global workforce, but it also plans to move some 1,000 jobs to "higher growth and lower cost geographies." Nortel plans to sell some of its real estate assets as well. The changes should help the company save $300 million a year.
For more on Nortel's turnaround efforts:
- read this report from the WSJ (sub. req.)