Nortel Reports Loss, Will Cut 2,100 Jobs

Nortel Networks Corp. reported a quarterly loss Wednesday and said it would cut 2,100 jobs.

Nortel reported a loss of $844 million, or $1.70 per share, during the fourth quarter compared with a loss of $80 million, or 19 cents per share, during the fourth quarter 2006. Revenue fell 3.7 percent to $3.2 billion.

The Canadian-based equipment maker said in addition to the job cuts it will also shift around 1,000 other jobs to lower-cost areas. The company expects the moves to save about $300 million a year.

Nortel said it expects 2008 revenue to grow in the low single digits.

"Over the past year, we have driven process improvements across the organization and today we are announcing the difficult but necessary measures that accompany this type of transformation,” said CEO Mike Zafirovski. “Our ultimate goal is to build a high-performance, efficient and simple organization within a cost structure that allows us to compete and win effectively against any competitor in the world.”