In The News
| Nortel chief promises cash bonuses to rally workforce (OC) | |
| Cisco's Chamber rules out near-term acquisition (NP) | |
| Nortel's Chair appointed to Canada's Outstanding CEO of the Year Board of Directors | |
| Moody's downgrades Nortel debt to B3 (G&M) | |
| Richard Ricks is out at lagging tech firm (GA) | |
| Nortel reduces RTP rolls another 1,000 jobs (NO) (NO) | |
| Dunn praised for guiding Nortel through tough year (CP) | |
| Ex-CEO Puts Nortel Stock Out of His Misery (TS | |
| Nortel CIO says cuts in IT started before downturn (CW) | |
| Genuity sues Nortel for $14M (BBJ) |
Genuity Solutions Inc. said in a federal lawsuit filed Wednesday that Brampton, Ontario-based Nortel violated a contract requiring it to make a $6 million payment on Sept. 30 and another $8 million payment by year's end, according to a Bloomberg Business News report
Nortel "attempted to take advantage of Genuity's difficulties, so that Nortel could lessen or avoid completely its payment obligations," Genuity's breach-of-contract suit said. Nortel's sales have plunged with a drop in spending by phone companies. Carriers, facing waning demand for services, have repeatedly slashed equipment budgets this year, forcing Nortel to counter with cutbacks of its own. |
| Roth gets set to leave Nortel for good (OC) | |
| gone: THE LAST DAYS OF NORTEL (G&M) | |
| EDC lends over $10 billion to clients of Bombardier, Nortel (NP) | |
| Nortel's Ottawa workforce now stands at about 6,000 (OBJ) | |
| Merrill Lynch: Nortel down to $500 million US cash next year (CP) | |
| Is Nortel in a death spiral? (G&M) | |
| Nortel opts out of optical, plans to purge payroll (ITW) | |
| The $1.9-billion ticking time bomb (G&M) | |
| NORTEL planns to cut its workforce 17% to 35,000 (MSNBC) | |
| Nortel to cut 7,000 jobs (OBJ) | |
| Nortel's R&D spending down to US$579 in second quarter (OBJ) | |
| Lucent posts loss, cuts jobs (OBJ) | |
| Form 11-K (SEDAR) | |
| Sales, profit could miss covenants (NP) | Nortel Networks Corp.'s sales and operating earnings look likely to fall short of bank covenants |
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US$1B loss at Nortel pension plan(NP)
July 5, 2002 |
Plunging stock price wipes out one-third of assets in employees' nest egg |
| Nortel may be mulling reverse stock split (NP) | To stay on S&P 500 |
| Nortel retirement plans hammered by stock slide (OBJ) | |
| Nortel, JDS top two R&D spenders in 2001 (OBJ) | |
| Intel, Agilent show interest in Nortel Optical-components unit (OC) | |
| Nortel cuts 200 Irish jobs (OBJ) | |
| INTERVIEW-Nortel sees light on horizon in China market (Forbes) | |
| Nortel may wield axe to staff again June 15, 2002 (NP) ) |
Nortel Networks Corp.'s may be facing even more job cuts because of a slowdown of business from one of its main wireless customers, sources inside the Canadian networking giant said yesterday.
A source close to Nortel said it was preparing a job cut of up to 10% of its 42,000 workers. The source at Nortel said the layoff was likely to occur by the end of June, which is also the close of the company's second quarter. |
| Eight laid-off staff sue Nortel over severance deals June 10, 2002 (OBJ) | |
| Nortel Networks Corp flashing a red flag in the benefits program | |
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Can Nortel still woo wary investors?
June 6, 2002 (OC) |
"If Nortel can raise the money, the company has a chance of surviving and ultimately recovering," he said. "But the risk of bankruptcy is certainly greater than zero, and the stock is indicative of the overall seriousness of concerns about the company's outlook," he added. |
| "Nortel executives receiving bonuses when 50,000 people have lost their jobs" | |
| Nortel alumni move on to opportunities outside of Ottawa | |
| Nortel to cut 3,500 more jobs by September | |
| Tekmark picks up Nortel software product dubbed Preside | |
| Enron, Nortel, BCE and JDS Uniphase examples of poorly managed firms. | |
| MuAnalysis Inc. is leasing 12 laboratories in the Corkstown Road plant | |
| New report questions Nortel financing | |
| Nortel launches new attack | |
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JDS takes writedown on Nortel shares
May 15, 2002 |
JDS acquired the Nortel shares when it sold its Zurich manufacturing facility to Nortel in an all-stock deal worth $3 billion. |
|
Nortel to file for new debt, equity issues
May 13, 2002 |
Nortel intends to file for up to US$2.5 billion in debt or equity securities. |
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Nortel rejects report on cash needs
May 10, 2002 |
Nortel Networks has moved quickly to dismiss an analysts' report which questions the company's cash needs. |
| Third former Nortel Networks plant in Canada being shut |
Solectron to shut down Calgary wireless plant
490 to lose jobs ex-Nortel operation closes in September |
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Nortel employs 7,000 in Otttawa
April 25, 2002 |
According to the Ottawa Technology Industry Guide Online |
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Between 8,000 and 8,500 Nortel employees remain in Ottawa
April 25, 2002 |
The national capital region has never seen anything like this. The mid-1990s
retrenchment of the federal government -- when 5,000 positions were cut
locally -- doesn't even come close. That exercise took place over a leisurely
three years and a significant chunk of the downsizing was voluntary. Nortel
has cut roughly 60 per cent more staff in less than half the time -- and the
vast majority have been sacked.
Consider first where Nortel has been. At its peak at year-end 2000, Nortel employed about 16,000 regular full-time workers in Ottawa. If we assume the cuts in Ottawa took place in proportion to those elsewhere, this would bring the total down to 7,500. However, a strong majority of Nortel's Ottawa employees draw on the firm's R&D budget, which has been cut by only a third since 2000. The upshot: Ottawa remains home to somewhere between 8,000 and 8,500 full-time Nortel employees. |
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No more cuts at Nortel
April 24, 2002 |
Mr. Dunn expects Nortel to meet expense targets after cutting the payroll to 44,000 from 47,000 at the end of March. Nortel has cut the number of executives at the vice-president level or above to less than 300 today from 750 a year ago. |
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More layoffs at Nortel than Lucent and Motorola
April 23, 2002 |
Nortel has announced a total of 52,000 layoffs in the last 18 months.
Nortel has the dubious honour of laying off the most people, while Lucent has turfed 50,910 and Motorola Inc. 42,910. |
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Nortel Ottawa employment: down to 7,000 from 18,000
April 21, 2002 |
So far, Nortel has refused to say how the restructuring will affect Ottawa operations. This city continues to boast the largest concentration of Nortel's global workforce of 47,000. It's estimated that Nortel employs about 7,000 people in Ottawa, down from an estimated high of 18,000. |
| Nortel sacks real estate team: sources | |
| Aastra acquires network access businesses from Nortel | |
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Will Nortel's severance plan survive much longer
April 20, 2002 |
This week the troubled telecom giant revealed that its workforce fell to 47,000 at the end of March, or 1,000 more than the 48,000 figure it was providing just
a few weeks earlier.
Nortel said yesterday the target number was always approximate and the precise number wasn't determined until the end of March. ... hurt morale in an organization that has already taken too many body blows. Indeed, the biggest question in the minds of many Nortel employees for many months is not whether there will be more layoffs but whether the current generous severance plan will survive much longer. |
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Thousands more job cuts at Nortel
April 18, 2002 |
Nortel Networks Corp. posted results with few surprises on Thursday, but said it will cut up to another 4,000 jobs. |
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Nortel layoffs to end
March 1, 2002 |
In his e-mail to employees, Mr. Dunn said: "The workforce re-sizing
activities still under way around the company will take us to the
previously announced number of approximately 48,000 employees
worldwide. The work started in 2001should be wrapped up by the
end of the first quarter.
"This company-wide activity has taken a bit longer than expected, and we're all anxious to put it behind us as we focus on re-energizing the workforce." Nortel, which had a permanent staff of 92,500 in January 2001, had planned to cut to just 45,000 in response to a 40-per- cent sales decline. It set a new target of 48,000 in December and had 52,000 employees in January. The remaining cuts were slowed by European labour laws requiring lengthy notice and by delays in negotiating the sale of some Nortel operations. Nortel is under heavy pressure to return to profitability by the last quarter of this year. But Mr. Dunn said last month that weak customer demand was creating challenging conditions to deliver sales of about $3 billion U.S. in the March quarter, down 10 per cent from the December quarter. Nortel needs sales of $3.8 billion quarterly to break even. Major U.S. carriers from Qwest to Bell South have continued to slash equipment spending plans because of weak revenue growth. (The Ottawa Citizen Nortel, Roth sever ties; layoffs to end by Bert Hill Friday, March 01, 2002) |
| Mighty Nortel: Now a collection of dusty crates |
At the time, the facility employed 2,200 people, annually producing $2-billion worth of equipment used by communications companies to boost network capacity. Demand for the products has dried up, leaving Nortel in dire straits.
"There are 10 or 20 people left here," said a Nortel worker yesterday. "It's a sad place today." |
| FORM 10-K Nortel Networks Corporation | Workforce reduction charges were related to the cost of severance and benefits associated with the approximately 36,100 employees notified of termination. Of the 36,100 employees notified by December 31, 2001, approximately 13,900 were direct employees performing manufacturing, assembly, test and inspection activities associated with the production of our products, and approximately 22,200 were indirect sales, marketing, and administrative employees, and manufacturing managers. |
| More layoffs seen in telecom horizon |
Analysts say there's a good chance Nortel Networks will announce more job cuts when the communications equipment maker releases its first-quarter financial results on Thursday.
Nortel refused to answer questions about the possibility of layoffs, saying it wouldn't discuss its revenue or cost projections until a conference call Thursday. |
| Pension hit the latest hurdle for Nortel Growing shortfall |
Nortel Networks Corp. is confronting yet
another financial hurdle as losses in its
pension and benefit plans have resulted
in a US$1.5-billion funding shortfall and
may hold back its attempts to regain
profitability this year. In the company's new 10-K form, an annual financial document filed with U.S. securities regulators, Nortel reveals that a sharp decline in its pension plan investments in 2001, combined with an increase in benefits paid, resulted in an unfunded pension liability of US$1.5-billion. |
| Nortel shelves Xros |
Xros, founded in 1996,is based in Sunnyvale, Calif. Many of its 100 employees could be transferred to other areas, Nortel said.
|
| Layoffs to end soon at Roth-free Nortel: report | When the bloodletting finally ends, the worldwide permanent workforce of Nortel -- devastated by plummeting global demand for telecom gear -- will stand at under 45,000 people, down from more than 92,000 a year ago. |
| More job cuts at Nortel? |
A new analyst's report, meanwhile, says that Nortel's continuing financial struggles
could prompt the Canadian technology giant to again cut costs -- likely including
more jobs -- and renegotiate some of its bank loans.
(Globe and Mail Nortel abandons executive suite, hands power to Dunn By SIMON TUCK Friday, March 1, 2002) |
