Nortel Slashing Another 5,000 Jobs

Struggling telecom giant Nortel (NT Quote - Cramer on NT - Stock Picks) said Thursday that it would slash another 5,000 jobs by midyear as it continues to grapple with an industrywide spending pullback and a macroeconomic slowdown.

The networker met twice-lowered first-quarter earnings estimates, posting a pro forma loss of 12 cents a share. Revenue fell to $6.18 billion, in line with lowered estimates, from $6.32 billion a year earlier. Including charges, Nortel's loss amounted to $2.58 billion, or 82 cents a share.

Nortel had said in February that it would cut 10,000 jobs, then a month later ratcheted that figure up by 5,000. Thursday's announcement boosted the company's job-cut toll to 20,000. Nortel says it needs to control costs.

Noting the uncertain economic and industry-spending environments, Nortel didn't offer financial guidance for the second quarter or the year. The company said its weak results reflected reduced capital spending by service providers and enterprises resulting from tighter capital markets and a severe slowdown in the U.S. economy.

TheStreet.com chronicled Nortel's woes over the last year and investors' expectations for the earnings report in an earlier story.