Nortel Networks has announced plans to cut an additional 3,200 jobs worldwide and cancel all unpaid 2008 bonuses as an attempt to stay solvent under bankruptcy protection.
The layoffs will effect approximately 10% of the company’s work force, and is in addition to a round of 1,300 cuts announced last November. The company filed for creditor protection on Jan. 14, 2009.
“There is nothing more difficult than notifying employees, and Nortel is extremely conscious of the personal financial burden this will cause affected employees and their families,” said Mike Zafirovski, Nortel’s president and chief executive officer. He explained that, as with the prior group layoffs, severance payments will be withheld, citing a lack of financial flexibility.
The company will also withhold bonuses outstanding for 2008 and has changed its bonus plan for 2009 to operate on a quarterly rather than annual basis. “This will provide a more immediate incentive for employees upon the achievement of critical shorter-term corporate performance objectives,” the company said in a statement.
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Canadians Looking for Meaningful Work
More than half of Canadians are prepared to accept a lower wage or a lesser role if their work contributes to something more important or meaningful, according to a new international workplace survey.
The Kelly Global Workforce Index survey of nearly 100,000 people in 34 countries found that 58% of Canadian respondents would forego income or job status to do something more meaningful, with Generation Y the most willing to make such a sacrifice.
“They place value on work which is personally satisfying, which builds competence and self-belief, and which helps to advance long-term career goals,” says Karin French, vice-president and managing director of Canadian operations with Kelly Services. “The survey demonstrates the value of work in building pride and self confidence and highlights the differing views across the generational divide.”
The survey also revealed that 40% of Generation X respondents say their career goals are not being advanced in their current job, and 53% of baby boomers plan to look for a new job within the next year.
More than half (51%) of global respondents indicated that they would be willing to accept a lower wage for more meaningful work, particularly amongst Generation Y in Asia Pacific.
“These findings show that the modern employment market is extremely dynamic and that achieving a high performing, productive and stable workforce means managing a complex set of cultural and geographic influences,” says Kelly Services’ executive vice-president, George Corona.