Nortel said the axing of 3,500 jobs worldwide would not affect staff from its recent Bay acquisition.
Said Julie Aguilar, Nortel's senior manager of communications, "This has nothing to do with the merger. It is because of the way the market is going and our emphasis on data rather than traditional voice telephony."
She continued: "Bay will not be affected at all. The redundancies will be from our traditional business, such as telephony switches." Nortel admitted it plans to cut four per cent of its 80,000-strong global workforce (see Newswire, 15 September). Most of the losses will occur in North America where the majority of its switch manufacturing are located. The company did not reveal when and where the cuts would be made.
Aguilar said it was not a cost cutting exercise, but part of the company's aggressive move towards IP voice and data integration.
Analysts were not surprised by the news as traditional telecomms equipment vendors, such as Nortel and Lucent, are busy changing their focus to data communications. "It's better that Nortel bites the bullet now, but it has got to ensure its data business grows faster than the others go down," said Neil Rickard, research director at Gartner Group Europe.
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