Nortel Loses $844 Million, Plans More Job Cuts

[OhioChick]

Source: Information Week

Some 2,100 jobs are targeted for elimination and an addition 1,000 positions will be shifted overseas, the company said.

By W. David Gardner
InformationWeek
February 27, 2008 06:54 PM


The downsizing agonies are continuing at Nortel Networks as the networking company reported a sharp increase in net losses of $844 million for its fourth quarter and another 2,100 in job cuts.

The company has been relentlessly downsizing in the wake of an accounting scandal; its workforce numbered nearly 95,000 in 2000 and had slipped to 32,500 by the end of the last quarter. In addition to the 2,100 jobs slated to be eliminated now, Nortel (NYSE: NT) said it will shift another 1,000 employees to "higher growth and lower cost geographies" like China and India.

It's small consolation, but the company has plenty of company as other networking firms including Motorola (NYSE: MOT), Ericsson, and Alcatel Lucent (NYSE: ALU) have also been downsizing as carriers have cut orders in anticipation of delivering a new generation of wireless infrastructures.

Nortel's revenue dropped to $3.2 billion in the quarter -- a drop of 3.7%. A whopping $1.04 billion tax-related charged heavily impacted the quarter's results.



Read more: http://www.informationweek.com/news/showArticle.jhtml?articleID=206900642

[Viva_La_Revolution]

1. "will shift another 1,000 employees to "higher growth and lower cost geographies" ...

..like China and India."


NOT "employees", just their jobs. :mad:

[OhioChick]

2. You Got It....

:mad:

[Highway61]

3. OK...so add up all the salaries

of the US workers losing their jobs....send the jobs to where they get paid half nothing and the CEO keeps his salary as it is. Job well done...right? I say, if you off shore, get the fuck out of the USA Mr CEO and Board of directors etc and LIVE in the country you off shored to!!!

[OhioChick]

4. Damn Good Response!

:toast:

[HughBeaumont]

5. 2100 new Democrats.

Keep shooting progress dead, O nation's wealthy. Your attempts to turn the USA into South America will backfire and bite you in the ass in the end. Better load up on gates, private mercenaries and helicopters. Assholes.

I don't get it. HOW do American people . . . buy your plans, software and products . . . if they have no jobs? Please explain this to me, captains of industry, because I don't GET how that whole "spending money on your stuff to keep YOU in business" thing is going to work. Even Hank Ford, anti-unionist Nazi sympathizer that he was, understood that the workers kind of needed to have cash to buy his product. Right? Concede?

I mean, are the wealthy dicksnots of this nation just that non-caring and callous or do they really not have a long-term outlook in mind?

My guess is the latter, since it's painfully obvious the whole shithouse is going to go up in flames at any time while they're engaging in mass hoarding before it does.

[Nameuser]

6. Small details

Nortel is a Canadian company, and its current CEO from Macedonia, and I;d say the bulk of its employees, right down to the lowest warehouse worker, gleefully participated in the waste and mismanagement that flatlined Nortel. So why are we blaming the US? For being a bad influence?

[OhioChick]

7. I am Aware That Nortel Networks is a Canadian Company....

This mass layoff will not only affect Canada but the US, as well. (I posted for our Canadian Friends, too.)

"The companies expanded into the U.S. in 1971. Today there are employees in over 100 locations in the U.S. with R&D, software engineering, and sales centers in many states including California, Florida, Georgia, Maryland, Massachusetts, North Carolina, Texas, and Virginia. Nortel's primary R&D centres in Canada are located in Ottawa (Nortel's R&D headquarters), Montreal, Belleville, and Calgary. In the United States, Nortel's major R&D sites are in Research Triangle Park (North Carolina), Richardson (Texas), Boston, and Santa Clara.<11>"

http://en.wikipedia.org/wiki/Nortel_Networks

[HughBeaumont]

8. "Downsizing in the wake of an accounting scandal"?

Doesn't sound like "the bulk of it's employees" had anything to do with that. These workers are unfairly paying the price for mismanagement and corruption and that's wrong.

[Nameuser]

9. Employees

Management may have inspired them follow suit in their immoral material quests, but the little people at Nortel - and similar places - were hardly innocent of any wrongdoing.

Because they were direly needed during the telecom boom, quite a few got pretty lazy, took to working as long or little they pleased, playing MS blackjack, stealing office supplies, tools, laptops, hubs. Cables and printers disappeared constantly, licensed software was widely pirated, Napster was installed on many a desktop to download music, even dog porn, all day. Everyone demanded fancy cubicle sundries like new, color-coordinated hole punches and staplers, USB keyboards and mice.

Some people rolled all their and their relatives' savings into Nortel stock expecting it to continue growing, so they wouldn't have to work anymore, least of all in "this boring shithole".

During the downturn the same folks continued to "secure" everything they could to sell on eBay, somehow feeling a sense of entitlement and for thirst for fevenge. They worked so hard for Nortel so logic had it that Nortel owed them big time for their "hard-earned" savings going to hell.
Nobody ever complained about all that junk missing, so big deal.