By Lisa Burroughes, 17 September 1998 17:23
NEWS Nortel has announced plans to axe 3,500 jobs over the next three months in a bid to focus on the European market for IP data networking. The telco claims the job cuts will be offset by the recruitment of a similar number of data networking professionals - many of which will be in Europe.
Earlier this year, Nortel bought networking company Bay Networks for around $7bn
and it was keen to reassure Bay employees that they will not be affected by the cuts. A spokesman for the company said: "Voice will be the area getting cut, and a large majority of the job losses will affect US and Canadian staff."
He explained: "We are focusing on the high growth businesses and markets, and Europe has real growth potential. Over the last nine months we have also been very focused on IP protocol and networking because there is 30 to 40 per cent growth in that market, as opposed to 3 per cent in voice."
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