Telecommunications giant Nortel Networks issued a profit and revenue warning after markets closed yesterday, saying it would cut a total of 10,000 jobs this year - 6,000 more than previously announced.

It cited the economic downturn in the US economy which it said was proving to be sharper than expected.

"While we previously noted that economic uncertainties and capital constraints were impacting our outlook, we are now seeing a faster and more severe economic downturn in the United States, which we now expect will result in a slower overall market growth of approximately 10 per cent in 2001," said Nortel Networks president and chief executive officer Mr John Roth.