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Nortel to cut 3,200 jobs globally, stops bonuses

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Seema Hakhu Kachru PTI Toronto
Last Updated : Jan 19 2013 | 11:16 PM IST

Telecom equipment giant Nortel Networks Corp will cut its global workforce by 3,200 in the coming months.

Nortel, headquartered in Dallas, Texas, said in a statement that a fresh round of job cuts will be made over the next several months.

"Nortel intends to reduce its workforce by an additional net 3,200 positions worldwide. The company expects to carry out these reductions over the next several months...," the statement said.

It said the cuts were prompted by an "unprecedented economic environment".

This round of job cuts would be on top of 1,800 job cuts already announced. "These new reductions are incremental to the 1,800 remaining reductions from previously announced plans that require completion," the statement said.

Like many other companies, Nortel's board has also decided not to pay bonuses under its annual incentive plan and is asking a Canadian court to quash its equity-based compensation plans.

Nortel which has significant business presence in India, in January said that its American units, including Nortel Networks Inc and Nortel Networks Capital Corp, have filed voluntary petitions in the US under Chapter 11 for bankruptcy protection.

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