Nortel cutting 10,000 more jobs

Canadian telecoms giant Nortel Networks warned tonight it expected to post a $3.6bn loss in the third quarter and would reduce its workforce by almost 20,000 more jobs to less than half the total it started with this year.

Half of the cuts will be through the sale of assets.

Nortel, a top producer of fibre-optic and other communications equipment, said the latest round of cuts will reduce its work force to 45,000. The company began the year with almost 95,000 employees.

The company said it was still adjusting to the sudden slowdown in the demand for technology, but that business appeared to be stabilising.

"While the magnitude of the market adjustment from previous levels of expenditures has been challenging, we believe we are beginning to see some early signs that the expected capital spending by service providers is approaching sustainable levels," chief executive officer John Roth said in a statement after North American stock markets closed.

The company had not provided previous guidance for the third quarter.

The company’s stock has plunged 90% in less than a year, losing more than $300bn in market value. Nortel shares traded at $5.29, down 18 cents, on the New York Stock Exchange today.