Nortel to slash more jobs amid bankruptcy

Nortel Networks will cut more jobs as it looks to save money amid its bankruptcy restructuring. The company is slashing everything including the company's corporate jets.

Nortel is seeking an extension until May 1 to deal with its debt restructuring and that will likely mean more job cuts, according to a filing by Ernst & Young, the court-appointed monitor overseeing Nortel's bankruptcy. The company has a detailed plan to cut jobs from its workforce of 30,000, though there is no word yet on how many layoffs will occur or where those cuts will be. 

The company filed for bankruptcy in January with $2.4 billion in cash reserves, which it is apparently burning through quickly. Nortel is considering selling real estate holdings as well its two corporate jets, which will save the firm $1 million a month. Nortel may also be cutting costs to make it attractive to a potential buyer when it emerges from bankruptcy protection.

Since the bankruptcy filing, the company has exited the mobile WiMAX business, which significantly impacted the business of Nortel partner Alvarion. The company also decided to postpone the sale of its Metro Ethernet Networks business.

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