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5,000 more jobs go at Nortel

Nortel has added to the misery of the tech sector, adding another 5,000 redundancies to the 15,000 job cuts which have already been announced.
Written by Ben King, Contributor

Nortel has added to the misery of the tech sector, adding another 5,000 redundancies to the 15,000 job cuts which have already been announced.

The announcement coincided with the reporting of heavy but expected loss in their first quarter 2001 results. The company lost $385m from operations during the quarter, or $2.58bn after acquisitions and other charges. Operating profit for the same quarter last year was $347m. President and CEO John Roth blamed reduced spending on telecoms infrastructure and the gloomy market climate for the losses and job cuts. "The lack of available funding from the capital markets, high debt levels at many service providers and the compounding effect of the US economic downturn and its impact on other regions will continue to constrain capital spending by service providers," he said. Roth blamed this range of unpredictable factors for the company's unusual decision not to issue a profit prediction for the next quarter or full financial year. Long-range optical switching products was the worst hit sector of Nortel's business, with local internet solutions also doing badly. At the same time, the IP, metro-area optical and wireless areas of the business sold well over the quarter.
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