Nortel Networks has announced plans to cut 2,900 staff but chief executive Mike Zafirovski said it did not expect to chop any more jobs over the next 24 months.
Nortel, one of the world's biggest communication equipment makers, will also shift 1,000 jobs to lower-cost locations such as China, India and Mexico as part of its plan to reduce costs and improve profitability.
Asked if the company plans to cut additional jobs between now and the end of 2008, Mr Zafirovski replied: "There's none planned, correct. What was announced will position us very well assuming our growth prospects, assuming we're successful with our innovation," he told reporters in Ottawa yesterday.
A big portion of the job cuts will come from Nortel's general and administrative area. The bulk of the cuts, to take place over the next two years, will be in the United States, followed by Canada. Nortel has cut its Irish workforce in recent years but still employs around 300 people here.
Nortel is also reducing its real estate portfolio, which in combination with the job cuts will save $400 million (€308 million) a year when complete. Mr Zafirovski is trying to revitalise the company, which has been stung by competition, cost-cutting, sector consolidation and internal woes, including a series of financial restatements.
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