Nortel plans to cut 10,000 jobs and as it lowers earnings outlook

Article Abstract:

Nortel Networks Corp. announced sharply lower profit estimates and layoffs of 10,000 employees as it encounters slowing markets from the U.S. economic downturn. Nortel's new forecast is for 15% sales growth, down from 30%, and earnings growth of 10% instead of 30%. The late afternoon report caused Nortel stock to drop by 29% to $21 in after-hours trading. The company stated that reduced financing for small businesses have caused them to scale back on their telecom equipment purchases.

Canada, Nortel Networks Corp., NT

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Lucent is said to be ready to offer buyouts to 10,000

Article Abstract:

Lucent Technologies has offered 10,000 executives early retirement and has laid off 2,000, as well as cancelling 2,200 contract positions. Chief Henry B. Schacht hopes to save Lucent about $100 million a year with the buyout deal after suffering a $1.26 billion loss last quarter. Lucent hopes managers are enticed by the deal so the company can work toward raising $2 billion by Sept. The sale of a $4 billion fiber optics unit is fallow, so Lucent may close factories in Oklahoma and Ohio and possibly sell more. Schacht does expect narrower losses next quarter.

United States, Labor force information, Management, Lucent Technologies Inc., Securities, LU, Company personnel management, Schacht, Henry B., Agere Systems Inc.

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