Real Kato Blog: Nortel to Lay Off 1900 Workers

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Nortel to Lay Off 1900 Workers

Wednesday, 2006 June 28 - 9:08 am

Hmm.

So Nortel is eliminating 1900 positions. That includes 1200 operations people, 350 middle managers, and 350 other people around the world. They're ~~outsourcing~~ hiring 800 people in Mexico and Turkey to consolidate global operations. So the net result is that they'll have 1100 fewer employees. That's about 3.2% of its workforce.

No word yet on exactly where or when those cuts will hit.

They're also going to change retirement benefits, replacing all traditional defined-benefit pension plans with defined-contribution plans, and it'll eliminate health care payments to retirees (though it will still offer a group healthcare plan).

I am so glad I don't work there any more.

Nortel's stock is now at $2.08. Nortel has settled four shareholder lawsuits (two in the U.S., two in Canada), concerning the plunge in the stock price. The U.S. settlements were for nearly $600 million in cash, and 600 million shares of stock, though I don't know what that means to an individual shareholder.

Posted by Ken in: commentary

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