Nortel (NYSE: NT) is going to fire 2,100 poor souls as its business has gone into a flat spin. Telecom equipment companies have been falling like flies with recent poor reports from Alcatel-Lucent (NSYE: ALU) and the telecom unit of Siemens (NYSE: SI).
Revenue in the fourth quarter of $3.20 billion was down 4 percent year over year. The company lost $844 million.
"We have made strong consistent progress on key financial metrics in 2007 that has positioned us well for continued improvements in 2008 and beyond," said Executive Vice-President and CFO Pavi Binning. He is obviously looking at figures that no one else has seen.
Nortel only expects low single digit growth in 2008.
The company may not be dead, but it is getting there.
Douglas A. McIntyre