Tuesday, February 24, 2009

Nortel Announces Additional 3,200 Job Cuts

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, in accordance with local country legal requirements. These new reductions are incremental to the 1,800 remaining reductions from previously announced plans that require completion.

As previously announced, Nortel confirmed that it is working with several parties, including its creditors, to define the best plan forward to present to the bankruptcy courts. The company hopes to emerge from the creditor protection process as a more focused and competitive company.

In addition, Nortel's Board of Directors has approved management's recommendation to not pay any bonuses under the Nortel Annual Incentive Plan (AIP) for 2008. In addition, Nortel is seeking Canadian court approval to terminate its equity based compensation plans, including all outstanding equity under the plans (including stock options, restricted stock units and performance stock units), whether vested or unvested, and no further equity will be awarded in 2009. http://www.nortel.com/restructuring

  • Nortel announced its bankruptcy filing on 14-January-2009.

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