Nortel Networks is laying off another 3,200 employees worldwide, or more than 10 per cent of its global workforce, in an ongoing effort to restructure its operations while under court protection.
Analysts weren’t drumming up much optimism, however, with some saying that another round of layoffs won’t lift the telecom equipment maker out of its problems — which include heavy debts, an intensely competitive market and weak economies in several key countries.
“I would have more hope (in Nortel) if they had a strategy — or if they at least revealed that they have a strategy,” said Andy Woyzbun, lead analyst at Info-Tech Research Group.
“The question is where are you cutting. If you’re cutting randomly that’s dumb. If you’re selectively reducing, and you’ve decided which parts of your business you’re going to feed and which you’re going to starve, that to me would be hopeful.”
