A further 6,000 jobs would be lost to outsourcers and the company would spin off its 16,000-employee microelectronics unit, Agere, by the end of 2001, the company said.
The overhaul – announced at the same time as yearlylosses of more than $US1 billion worldwide - will see the company’s global workforce reduced from some 123,000 to around 90,500.
However, local employee sentiment was positive despite a global workforce reduction of more than 25 percent, corporate communications director Luisa Megale told ZDNet locally.
She said the company’s Australian operation was considered a "growing and robust business", and that most job cuts were expected to take place overseas.
"We’re a fairly young subsidiary. We expect the (local) impact to be minimal, if any," she said.
"There hasn’t been any overt negative reaction. We’re getting on with getting on."
The disappointing yearly results saw a decline in net earnings of more than US$2 billion globally since the previous year.
The workforce reduction came as part of a seven-point plan to cut costs and reassure investors.