Nortel Networks, Inc - losses, layoffs, dividend cancellations and alliances - Company Financial Information - Brief Article

CommunicationsWeek International, July 16, 2001

Nortel Networks, Inc., the Canadian networking company, reported a quarterly loss of $19.2 billion, one of the largest ever in corporate history. Nortel said that $12.3 billion of the loss was due to a goodwill write-down resulting from mergers and acquisitions made at the peak of the market. The company announced plans for a further 10,000 job cuts, bringing its workforce reduction to 30,000 worldwide, and said that it would cancel its quarterly dividend.

Nortel also announced that they would form a strategic alliance with Sun Microsystems to market Rapid Start Web Solutions, Internet data center venture.