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These cuts are in addition to worldwide job cuts of 20,000, which were issued by the company in April. Nortel, a global communications infrastructure company, has plants in Galway, Belfast, Dublin and Shannon, and currently employs 1,000 people in the Republic of Ireland and 2,000 in the North.
The cuts were announced as part of a profit warning issued by the company. Nortel Networks expects a net loss per common share from operations of approximately USD0.48. The revenue outlook reflects a decline in 2001 in the company's circuit switching sales, primarily in the US.
It expects to take a restructuring charge of approximately USD830 million during the second quarter, which will lead to the closure of facilities.
The company would not comment on whether the further job cuts would affect Irish jobs. However it did say that the cuts would take place on a global basis.
"The number has not been broken down regionally or geographically, it's not something that is specific to a country," a spokesperson for Nortel told ElectricNews.Net. "It's an ongoing restoration to reduce the headcount by 30,000 from 94,500, which we hope to have completed by September 2001."
The company has also announced that it is to discontinue its access solutions operations, which include narrowband and broadband access solutions operations. The company said that these operations accounted for 7.7 percent, and 6.9 percent of the company's revenues for the year 2000 and the first quarter of 2001, respectively.
Nortel has recently entered alliances with EMC, IBM and Juniper Networks. In March 2001, the company announced that it was to provide financial and technical support for the Programmable Systems Laboratory at Queen's University, Belfast.
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