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Nortel to cut 10% of its employees

by on27 February 2009

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3,200 jobs to be lost in order to survive

As we reported previously it has been difficult sledding for Nortel, and even after its Chapter 11 filing drastic measures are going to have to be taken if the company is to survive at all. To this end news has reached us that Nortel will cut 10 percent of its employees in the U.S. and Canada in an effort to just survive.

Several analysts are suggesting that the company really would likely need only around 15,000 to 18,000 employees to staff the reinvented company once it is all said and done. The 10 percent getting the axe equals approximately 3,200 workers.

Even with all of the reorganization and efforts to realign the company to survival mode, this still might not be enough for the telecom provider to make it in these difficult economic conditions. Nortel had about $2.4 billion in cash on hand when it filed for Chapter 11 protection and the company still has roughly $4.5 billion in long term debut. It is likely the company will have to shed additional assets just to make it in any form in the future.

Last modified on 27 February 2009
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