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Nortel to cut 10,000 more jobs

TORONTO (CP) - Nortel Networks is cutting 10,000 more jobs, issuing a profit warning and writing down assets to the tune of $12.3 billion (U.S.).
The tarnished star of Canada's high-tech industry also forecast today a net loss of about $19.2 billion (U.S.) in the second quarter and said it will discontinued common share dividend payments.
''Led by the United States, the global telecom industry is undergoing a significant adjustment,'' outgoing chief executive John Roth said in a release.
''After several years of capital expansion exceeding the pace of business performance, the capital markets have significantly reduced the flow of funds to service providers.''
Nortel's latest job cuts bring the total to 30,000 this year as the telecom equipment maker, based in Brampton, Ont., feels the impact of a sharp slowdown in the telecommunications industry.
On the Toronto stock market, Nortel shares are at 2-year low after losing more than $330 billion in market value in 11 months.
Watch thestar.com for more on this breaking story.
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2001-6-15 -04:00
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