Nortel releases half-year financials, slashes 3,500 positions.(Global Wireless)

RCR Wireless News, August, 2004

Nortel Networks Ltd. unveiled some of the mysteries regarding its financial performance since the year began, coupling the figures with a restructuring plan that will slash 3,500 jobs, or 10 percent of its staff. The firm also fired seven executives, four of whom had previously been placed on paid leaves.

The company fired its former president and chief executive officer, chief financial officer and controller April 28. The job cuts, which should be completed by the end of the year, will cost the company between about $300 million and $400 million and save between $450 million and $500 million annually. "In an increasingly cost-competitive environment, we are taking the steps necessary to continue to grow market share and, together with the...

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