Financially troubled Nortel said it will sell its manufacturing o...
Financially troubled Nortel said it will sell its manufacturing operations to Singapore-based Flextronics to raise $500 million and create long-term savings. The move, part of a 5-year divestment plan, will result in 2,500 jobs leaving Nortel. A Nortel official…
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said the affected workers “will have the opportunity to work for Flextronics,” which will assume control of Nortel factories in Canada, Brazil, France and Northern Ireland. The sale will leave Nortel with 32,500 employees, down from more than 95,000 in 2000. Nortel fired CEO Frank Dunn and CFO Douglas Beatty in April as they faced accounting investigations by the SEC and Ontario, Canada, regulators. Nortel plans to release mid-July revised financial statements, which will restate last year’s profit at 1/2 the $732 million originally stated.