Business
Nortel sees bigger loss, 10,000 more layoffs
Nortel Networks said Friday it will report a much larger-than-expected loss in the second quarter and lay off an additional 10,000 workers.The telecommunications equipment maker said it will report a loss from operations of 48 cents a share on sales of about $4.
Nortel Networks said Friday it will report a much larger-than-expected loss in the second quarter and lay off an additional 10,000 workers.
The telecommunications equipment maker said it will report a loss from operations of 48 cents a share on sales of about $4.5 billion. According to First Call, Nortel was expected to report a loss of 6 cents a share on revenue of $6.22 billion.
In addition, the company said it would suspend it dividend distribution. Discontinuing dividends is often seen by Wall Street as a sign of severe financial strain.
Nortel said it will meet its goal of cutting 20,000 jobs in the second quarter and close facilities. The company said it will save $875 million from those moves and realize the savings in the third quarter. --Larry Dignan, Special to ZDNet News