Nortel has said it plans to cut 1,100 jobs globally as part of a plan to increase “competitiveness.”

The company said it would also make significant changes to its North American pension programs in an attempt to improve operating margins and reach a targeted operating-margin expansion in excess of $1.5 billion in 2008.

Nortel will cut 1,900 positions and create 800 posts in what the company is calling “Operations Centers of Excellence.” The reorganization will cost around $100 million over the next two years and will result in savings of $100 million in 2007 and $175 million by 2008.
 
“Today's announcements continue our efforts to increase competitiveness, better manage our costs, and secure the resources to fuel Nortel's innovation," said Mike Zafirovski, Nortel’s president and CEO.

By: DocMemory
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