Nortel Networks is to cut a number of jobs in Ireland as part of its planned programme of job cuts unveiled in May. Around 9% of the company’s workforce in Galway is to be laid off in the next few weeks. Nortel’s order management and support functions are expected to be those hardest hit. The company is planning to agree compensation deals with its employees in order to reduce the impact of its cutbacks.
Nortel announced in May that it was going to cut 3,500 jobs worldwide, mainly in its optical networking operations. When the programme of cutbacks is completed, the company’s global workforce will be cut to 42,000. In January 2001, Nortel employed 95,000 people globally.
The job losses were originally announced after Nortel released a gloomy forecast which stated that it did not believe there would be a recovery in the optical networking market before the end of 2003 or early 2004. The job losses also follow the release of disappointing Q2 results. Nortel made a loss per share of $0.09 and a net loss of $697 million. The company’s Q2 revenues totalled $2.77 billion.