Nortel to cut 3,200 jobs, end stock-based compensation

By Jeffry Bartash

http://www.marketwatch.com/news/story/nortel-cut-3200-jobs-end/story.aspx?guid={E0E9DD7C-41A8-4AD3-B9D8-8EC525637883}&siteid=rss

Last update: 10:52 a.m. EST Feb. 25, 2009

Comments: 5

WASHINGTON
(MarketWatch) - Nortel Networks Corp., which filed for bankruptcy
protection last month, said Wednesday it will eliminate 3,200 jobs, the
latest in a series of job cuts undertaken by the struggling Canadian
maker of telecommunications equipment. "Tough decisions are being made
to restructure the company and work towards a successful emergence from
creditor protection," Chief Executive Mike Zafirovski said in a
statement. Nortel also said it will not pay any bonuses for 2008
authorized by the company's annual incentive plan, although it will
issue some grants in 2009. In addition, the vendor plans to end
equity-based compensation such as stock options. To retain key
employees, however, Nortel will offer financial incentives in certain
cases.