Nortel announced today that it will be reducing its workforce by an additional 3,200 positions worldwide. The company expects to carry out these reductions over the next several months, in accordance with local country legal requirements.
"There is nothing more difficult than notifying employees, and Nortel is extremely conscious of the personal financial burden this will cause affected employees and their families," said Mike Zafirovski, Nortel president and chief executive officer. "Nortel is a company driven by people and innovation. But with the unprecedented economic environment and resultant impacts on revenues, significant changes are required to regain our financial footing. Tough decisions are being made to restructure the company and work towards a successful emergence from creditor protection."
Nortel is in the process of preparing a comprehensive business and financial restructuring plan with the goal of emerging from the creditor protection process as a more focused and competitive company.
But the question still remains - Should Canada bail out Nortel?