Nortel Sells Off Plants, Shifts Focus
TORONTO, Ontario, May 14 -- Nortel Networks Corp. is selling manufacturing facilities worldwide and trimming its workforce in a shift from telecommunications equipment to Internet-related networking. The company plans to sell all but its most complex circuit board assembly plants and turn over to contractors most of its electromechanical manufacturing and a significant part of its repair business.
The company, based in Brampton, Ontario and formerly known as Northern Telecom Ltd., said the initiatives, first announced in January, will affect about 4,000 employees worldwide. Most of the approximately 3,000 employees based at operations slated for sale are expected to be employed by contract manufacturers as part of the divestiture agreements. An additional 1,000 jobs will be eliminated.
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