Canadian telecommunications equipment provider Nortel Networks posted a third-quarter loss of $3.4 billion on Nov 10 and announced 1,300 job cuts as its sales stagnate in a highly competitive market.
"In September, we signaled our view that a slowdown in the market was taking place," Nortel CEO Mike Zafirovski said. "In the weeks since, we have seen worsening economic conditions, together with extreme volatility in the financial, foreign exchange and credit markets globally, further impacting the industry, Nortel and its customers."
Nortel's customers are spending less, and competition in the telecom equipment market has multiplied, he said, forcing Nortel to step up cost-cutting efforts to maintain cash flow.
The company said it would continue to trim its management ranks, and incrementally reduce its workforce by 1,300 positions in addition to previously announced job cuts, as well as freeze salaries.
Copyright Agence France-Presse, 2008
