Canadian telecoms giant Nortel Networks has said it will reduce its proposed number of global job cuts by about 3,000 but this will have no impact on its operations in the South or in Northern Ireland. It is understood that previous redundancy programmes affecting its plants in Monkstown in Co Antrim, Galway and Dublin are already in process or are nearing completion.
But Nortel's assertion that its restructuring programme is complete will come as a welcome boost for employees at its plants North and South, who had continuing concerns about job security at Nortel.
The company yesterday delivered a fourth-quarter outlook better than analysts had expected.
The technology bellwether said it expected a pro forma net loss of approximately 16 US cents per share from continuing operations on revenues of $3.4 billion (€3.8 million) in the fourth quarter. The 16 cent pro forma loss equates roughly to $500 million after tax.
Analysts on a list compiled by First Call expect a loss of 18 US cents per share when Nortel announces its quarterly results on January 17th. "It's obviously better than the street was fearing over the last week. Our view had been that the quarter was roughly flat," said Mr John Wilson, an analyst with RBC Capital Markets.
Overall, the Brampton, Ontario-based firm expected a net loss per share from continuing operations for the quarter of 63 US cents, it said in a statement. This net loss will include $900 million (after-tax) for expected acquisition-related costs and a goodwill writedown as well as a $630 million restructuring charge, according to a Nortel release. So far this year, it has racked up more than $25 billion in losses. In late 2000, when other telecom firms were starting to show signs of weakness from the tech sector slide, Nortel reiterated its sales and demand were strong. But in February, it issued a profit and revenue warning and more jobs cuts ensued.
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