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Nortel to slash 1300 jobs, minimal impact on India
By siliconindia
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Thursday, 13 November 2008, 16:43 IST |
2 Comments
Bangalore: As an aftermath to the disastrous net loss posted by Toronto-based Nortel Networks, the company has announced its layoff plans. This networking service provider will slash 1300 jobs, with minimal impact on its Indian centers.
"In general, our policy has been to reduce jobs in higher cost parts of the world where we can, and to move resources closer to where our business opportunities lie," says Nortel Asia spokesperson Matthew Wray. So, India being a low-cost destination and one of the company's fastest growing markets has less chance of being affected by the layoffs. In the country, Nortel has about 1,000 employees (out of its total global strength of 32,000), and additionally has some 2,500 employees working for it in companies like Wipro, Tata Consultancy Services, Sasken and Infosys.
Infact, the third quarter net loss of the company which amounted to $3.4 billion, makes its CEO Mike Zafirovski to seek buyers for the ethernet networking unit, to help in reviving the profits. However, the credit crisis and the decline in capital spending will make it more difficult for the company to find a suitable buyer.
