Nortel to sell some operations to contractors
biz.yahoo.com
The company said the initiatives detailed on Thursday would affect
about 4,000 employees worldwide. Nortel had announced in January
that the complete three-year restructuring would affect about 10
percent of its employees, or about 8,000 jobs.
About 3,000 workers are part of operations slated for sale and it is
expected that most will become employees of contract
manufacturers as part of the divestiture agreements. Another 1000
jobs will be cut.
The company reiterated that it expects to save about $250 million to $300 million a year once its
restructuring plan is completed in the next 18 to 36 months.
''The company is on target for achieving results in line with the guidance for 1999, and the actions
announced today will have no significant impact on 1999 financial performance from ongoing
operations,'' Nortel said in a statement.
Nortel said plants in Ontario to be offered for sale include manufacturing and repair operations in
Brockville, Toronto and Mississauga as well as the Belleville printed circuit board manufacturing
operation. In the rest of Canada, the electromechanical assembly operations in Calgary and St. Laurent,
Quebec, are to be sold and its Vancouver manufacturing operations may be outsourced or sold.
U.S. plants on the block include repair operations in Nashville, Tennessee, Richardson, Texas, and
Sunnyvale, California. In Santa Clara, California, the company will move into new product development
from volume manufacturing.
Plants in Europe to be offered up for sale include the electromechanical operations in Chateaudun,
France, and Monkstown, Northern Ireland.
If Nortel cannot find appropriate buyers for these plants, it will look at other business options and may
shut down some sites. |
