Nortel Networks's bankruptcy advisor Ernst & Young International said that the troubled network equipment vendor is planning for more job cuts, though it is not yet clear when or how many jobs might be cut beyond the 1,300 jobs the company pledged last November to eliminate. That announcement, however, came two months before Nortel sought bankruptcy protection in January. Ernst & Young also said Nortel is cutting corporate jet leases that had cost it about $1 million a month.
Meanwhile, Light Reading reports that Nortel plans to continue its Patent Reward Program, which provides incentives for employees to register patents or win research grants. Nortel expects to pay employees about $750,000 collectively through the program this year. It's nice to see that amid all the trouble and uncertainty about Nortel's future, the company realizes that to whatever extent it can survive, it must rely on its remaining employees and its ongoing ability to innovate.
- Light Reading has this report
Nortel filed for bankruptcy protection last month
Nortel last week decided not to sell its Metro Ethernet unit