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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: primepower who wrote (1676)	1/13/1999 9:07:00 AM
From: Kent Rattey	Read Replies (1) \| Respond to of 14638

Canada's Northern Telecom to streamline operations TORONTO, Jan 13 (Reuters) - Canadian telecommunications equipment provider Northern Telecom Ltd. (Toronto:NTL.TO - news) (NYSE:NT - news) said on Wednesday it planned to streamline its operations in a program which it says will affect roughly 10 percent of its workforce. Nortel, the world's sixth-largest telecommunications equipment company, said the restructuring will lead to plant sales, more reliance on outsourcing and the ''redeployment'' of employees. Nortel said that as the program progresses over the next 18 to 36 months, it will generate savings of between US$250 million and US$300 million a year in the ''outer years.'' Savings from the program are not expected to significantly impact 1999 financial projections from continuing operations. ''This program did not have any impact on the final results for 1998,'' Nortel Vice-Chairman and Chief Executive John Roth said in a statement. ''We are on target for achieving results that are in line with our guidance for 1998 and 1999.'' The company said the three-year plan will simplify and streamline its operations, including order-entry and fulfillment, delivery, service and manufacturing systems. ''A key element of the company's strategy is the transition from vertical integration -- making and assembling most of its products and systems -- to virtual integration, acting as a systems house linking customers, design centers, internal production centers, contract manufacturers and other resources,'' Nortel said.