(Reuters) - Nortel Networks Corp, North America’s biggest maker of telephone equipment, announced sweeping cost cuts on Monday that include another 1,300 layoffs after posting a $3.4 billion loss in its latest quarter.
The company said the rapidly deteriorating economic environment has prompted customers to further reduce spending on its products.
Here are some key dates in the company’s history:
May 1, 2000 - BCE Inc, Canada’s biggest telecommunications group, completes spinoff to shareholders of 35 percent stake in Nortel, worth about C$88.5 billion ($75.6 billion)
February 15, 2001 - Nortel cuts 2001 earnings and sales forecast in half, blaming severe erosion in U.S. economic conditions. The warning triggers a 33 percent drop in its stock and brings class-action lawsuits.
May 29, 2002 - Nortel plans to cut 3,500 jobs and sell more assets as it pares its revenue forecast.
June 4 - Nortel shares collapse to decade-long lows on concerns a new financing will further dilute its stock. Cash-hungry Nortel raises $1.49 billion June 7.
October 23, 2003 - Nortel reports a quarterly profit, but says it will restate results going back to 2000.
March 15, 2004 - Nortel says it will likely restate results for a second time and delay filing its annual report.
April 5 - The U.S. Securities and Exchange Commission launches a formal investigation into Nortel’s accounting
June 29 - Nortel exits manufacturing business, sells plants to Flextronics International, transfers 2,500 staff.
September 30 - Nortel cuts almost 10 percent of its staff, 3,250 jobs, and vacates offices worldwide.
January 11, 2005 - Nortel restates its results and says 12 senior executives will repay $8.6 million of bonuses.
October 17 - Motorola’s No. 2 executive, Mike Zafirovski, is appointed CEO, promising renewed growth and focus.
February 8, 2006 - Nortel says it will pay $2.47 billion to settle two class-action suits from its accounting scandal.
February 7, 2007 - Nortel slashes 3,900 jobs and shifts 1,000 positions to lower-cost locations such as China and India.
October 15 - Nortel pays $35 million to settle civil charges filed by the SEC related to its accounting scandal.
February 27, 2008 - Nortel says it will cut 2,1000 jobs as it faces persistently slow demand for its products.
September 17, 2008 - Nortel cuts revenue forecast, plans another round of restructuring and the sale of its Metro Ethernet Networks business. It says it may also look for a partner to develop fourth-generation wireless technology.
November 10 - Nortel announces 1,300 layoffs, a freeze on salary increases and a review of its real-estate portfolio after posting a $3.4 billion quarterly loss.
Reporting by Wojtek Dabrowski; editing by Steve Orlofsky