Nortel to cut 1100 jobs as part of restructuring plans

Nortel to cut 1100 jobs as part of restructuring plans

Nortel Networks has said in a statement that they are going to cut as many as 1100 jobs globally as part of their restructuring plans.

The company is also thinking about reviewing its pension plan. The aim is to cut annual costs by about $100 million from 2008. Longer-term plan is to save more than $400 million in cash by 2012.

In all, Nortel plans to cut 1,900 positions and create 800 new ones. These restructuring steps would cost the company around $100 million over the next two years.

Nortel President and Chief Executive Mike Zafirovski said in a statement: “Today’s announcements continue our efforts to increase competitiveness, better manage our costs, and secure the resources to fuel Nortel’s innovation.”