Nortel prunes non-high-growth workforce

17 Jun 2002

Optical telecoms network builderNortel Networks is to "eliminate" 4000 full-time staff positions in what it calls "streamlining and realignment activities".

However, the Canada-based company will continue to hire in what it sees as the high-growth markets of the optical and wireless Internet, and says that its total workforce should remain constant at approximately 95 000 throughout 2001.

Unconfirmed reports have suggested that 800 of the affected staff will be cut from Nortel's Ottawa facility, and a further 100 from its Brampton, Ontario headquarters.

Chief operating officer Clarence Chandran says that the company will continue to focus on the business areas that show the most robust demand: "In 2001, hiring to address high-growth areas will remain a priority," he said.

After failing to meet highly optimistic financial targets, Nortel has been hit hard by the downturn in high-tech stocks, with shares now trading at less than half of their former value.

Nortel is expected to announce its first-quarter earnings on January 18, with forecast revenues of between USD 8.1 billion and 8.3 billion.