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To: vin kirplani who wrote (3106)	9/14/1998 8:47:00 PM
From: Glenn D. Rudolph	Respond to of 12623

CORRECTED - Nortel says it will cut about 3,500 jobs Reuters Story - September 14, 1998 12:27 %ELC %SP500 %CA %RESF %US NTL.TO NT ATB.L %ELI %GB V%REUTER P%RTR In Toronto story headlined "Nortel says it will cut about 3,500 jobs" please read in second paragraph: "It said the cuts would be made in every division" instead of "It said the cuts would be made in every division except for the key broadband networks unit." and in the fifth paragraph, "Every line of business will be affected," instead of "Every area almost, except for one, except for broadband, will be (affected)," he told Reuters. Correction is from source. Story also corrects spelling of name of spokesman to Janecek from Janacek throughout. A corrected repetition follows. TORONTO, Sept 14 (Reuters) - Telecommunications giant Northern Telecom Ltd. said on Monday it intends to chop "approximately" 3,500 jobs worldwide. It said the cuts would be made in every division. The company declined to say when it would start making the cuts. Spokesman Peter Janecek of Mississauga, Ontario-based Nortel, which recently acquired Bay Networks for $9 billion, confirmed an Ottawa Sun newspaper story that the company was prepared to cut jobs while it reshaped itself as an Internet-based firm instead of a telecommunications products company. "I can't comment on the number yet, but it (the Ottawa Sun figure) is really in the ballpark," Janecek said. "It's approximately right." "Every line of business will be affected," he told Reuters. Nortel has 80,000 employees worldwide including those at its new Bay Networks arm. Janecek added he will have more details of the announcement later on Monday. Nortel management has been contemplating a shift in its workforce for a while, Janecek said. >From its original decision earlier this year to jump deeper into Internet products, "we started to scrutinize every aspect of the business (and) make sure that we make the right investment decisions to reach the goal," he said. "We bought some businesses, we sold some businesses and this is part of the process, so if anything, it's more like a re-sizing because there will be some hiring in businesses where there (are) ... the prospects of substantial growth," he noted. There's also a move also to "flatten the management structure to speed decision-making," Janecek added, but did not elaborate. On the Toronto Stock Exchange Nortel stock rose C$0.50 to C$71.15 in turnover of nearly 2.3 million shares after midday. In New York, it added 37.5 U.S. cents to $46.94. In August, Nortel sold its Advanced Power Systems business to London-based Astec Plc to focus on its core telecommunications business including Internet-based networks. ($1 = $1.51 Canadian) ((Lydia Zajc, Reuters Toronto Bureau (416) 941-8109, e.mail lydia.zajcreuters.com)) Nortel has 80,000 employees worldwide including those at its new Bay Networks arm. Janacek added he will have more details of the announcement later on Monday. Nortel management has been contemplating a shift in its workforce for a while, Janacek said. >From its original decision earlier this year to jump deeper into Internet products, "we started to scrutinize every aspect of the business (and) make sure that we make the right investment decisions to reach the goal," he said. "We bought some businesses, we sold some businesses and this is part of the process, so if anything, it's more like a re-sizing because there will be some hiring in businesses where there (are) ... the prospects of substantial growth," he noted. There's also a move also to "flatten the management structure to speed decision-making," Janacek added, but did not elaborate. On the Toronto Stock Exchange Nortel stock rose C$0.50 to C$71.15 in turnover of nearly 2.3 million shares after midday. In New York, it added 37.5 U.S. cents to $46.94. In August, Nortel sold its Advanced Power Systems business to London-based Astec Plc to focus on its core telecommunications business including Internet-based networks. ($1 = $1.51 Canadian) ((Lydia Zajc, Reuters Toronto Bureau (416) 941-8109, e.mail lydia.zajcreuters.com))