Canadian telecoms giant Nortel has announced plans to cut 1,900 jobs around the world and trim its pensions fund in an effort to achieve cost-cutting measures.
The Ontario-based firm, which has recently been left out of a series of high-profile telecoms industry mergers following poor first-quarter results, said its decision to cut employment was in line with its 'business transformation' plan.
In total 1,100 jobs will be cut from the company's payroll, following a reduction of 1,900 positions and the creation of 800 jobs in what Nortel describes as "operations centres of excellence".
"In the past few months we've taken important steps, some with near-term impact, and others with longer-term benefits, toward transforming our operations to be more efficient and customer-focused," said Nortel's president and chief executive officer, Mike Zafirovski.
"Today's announcements continue our efforts to increase competitiveness, better manage our costs, and secure the resources to fuel Nortel's innovation."
Nortel's North American pension plan has also been severely curtailed following today's announcement. Payments will reduce annual pension expenditure by $100 million, leading towards an eventual saving of over $400 million by 2012.
"I am confident in the progress we are making in turning around Nortel and recreating a great company," Mr Zafirovski said.