Contract Manufacturing News...
Nortel to slash 4,000 jobs in first wave
By Bloomberg News
Special to CNET News.com
May 13, 1999, 2:50 p.m. PT
Nortel Networks, the No. 2 phone equipment maker in North America, said it plans to sell manufacturing and repair plants in Canada, the United States, and Europe and cut 4,000 jobs to reduce costs.
The moves are the first stage in a cost-reduction plan announced in January that will eliminate 8,000 jobs, or about 11 percent of the company's workforce, over three years. The Brampton, Ontario-based firm intends to sell the plants to contract manufacturers. If no buyers are found, it may close them.
Nortel wants to focus on making sophisticated Internet and data networking gear and move away from its traditional business of making voice switches. It will consolidate most operations at "systems houses" in seven cities in Canada, the United States, France, the United Kingdom, and Northern Ireland, and use contract manufacturers for more services to lower costs.
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