Nortel Networks Corp. [NT.TO] may cut up to 5,000 jobs next week -- not counting the workers it would lose through the planned sale of its Metro Ethernet business -- as part of a restructuring the company is expected to announce with its quarterly earnings release next Monday, according to this report.
Nortel, which once employed more than 90,000, has been whittled down to about 32,000 staffers currently, but badly needs to cut more costs as spending on telecom gear tightens and its pension obligations mount.
Echoing a growing chorus about Nortel's precarious condition, the Reuters report also casts doubt on whether anything Nortel does at this point will be sufficient to save it. The story quotes one investor saying the company is in a death spiral and will find it "almost impossible" to cut its way to growth. -- Andrea Orr
See Nov. 4 story on Nortel from Reuters
See Oct. 25 post on Nortel from Tech Confidential
Continue reading below
