LONDON -- Canadian telecommunications-equipment firm Nortel Networks on Monday said it swung to a third-quarter net loss of $3.4 billion, or $6.85 a share, compared to net income of $27 million, or 5 cents a share, earned in the year-earlier quarter. Profit in the latest quarter was hit by a $2.07 billion increase in the valuation allowance against deferred tax assets and a goodwill write-off of $1.14 billion as well as other smaller charges. Revenue fell 14% to $2.32 billion, as a result of a "challenging economic environment, competitive pressures and reduced spending by carrier customers," in particular in North America. The company also warned that its results for the year would come at the bottom of its previous guidance. It added that due to the economic downturn and currency fluctuations, results could come in lower than current expectations. In order to preserve cash, Nortel unveiled further restructuring measures expected to save $400 million annually by 2009. It plans to cut an additional 1,300 jobs and will extend its hiring freeze through 2009.


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Yeah, local TV news last night said 2,000 being laid off, including some @ Reseach Triangle Park, up by Raleigh, NC. Don't know what they do up there, unless they support Embarq's Nortel sales/service, as well as some of their own retail 'activities' in the 'triangle'. John C.

I got a 1st cousin that has worked at Triangle Park in Raleigh for going on 28 years on R/D of the DMS.
Last time I talked to him he said he had escaped the lay offs in the past, but if they had another he would probably be in the pink slip group.

Very sad news indeed.

And the retirement length at Nortel is....30 years? John C.