Nortel Announces Further Job Cuts

The Press Association has reported that telecoms equipment giant Nortel has said it plans to reduce its global workforce by 3,200.

Nortel – which employs around 2,000 UK staff and is a major sponsor of the 2012 Olympics – said the cuts were in addition to the 1,800 reductions still to be implemented from previous plans.

The firm filed for bankruptcy protection last month amid mounting concerns over its future after it reported rising losses.

The Canadian-based firm said the move was part of a “business and financial restructuring plan”.

Mike Zafirovski, Nortel president and chief executive, said: “There is nothing more difficult than notifying employees, and Nortel is extremely conscious of the personal financial burden this will cause affected employees and their families.

“Nortel is a company driven by people and innovation. But with the unprecedented economic environment and resultant impacts on revenues, significant changes are required to regain our financial footing.

“Tough decisions are being made to restructure the company and work towards a successful emergence from creditor protection.”

Nortel said the reductions to its 31,000 global workforce would be made over the next “several months”. A spokeswoman for the company said it would not provide a geographical breakdown of the planned cuts.

The firm has a large presence in the UK, with its European, Middle East and Africa (EMEA) head office based in Maidenhead, Berkshire – where it employs 1,200 staff.

It also has sites in London, in north Lanarkshire in Scotland, Newtownabbey in Northern Ireland and Harlow, Essex.