TORONTO — Nortel Networks (TSX:NT) is laying off another 3,200 employees worldwide, or more than 10 per cent of its global workforce, in an ongoing effort to restructure its operations while under court protection.

Analysts weren’t optimistic, however, with some saying that another round of layoffs won’t lift the telecom equipment maker out of its problems – which include heavy debts, an intensely competitive market and weak economies in several key countries.

“I would have more hope (in the company) if they had a strategy – or if they at least revealed that they have a strategy,” said Andy Woyzbun, the lead analyst at Info-Tech Research Group.

“The question is, where are you cutting? If you’re cutting randomly, that’s dumb. If you’re selectively reducing, and you’ve decided which parts of your business you’re going to feed and which you’re going to starve, that to me would be hopeful.”

Nortel filed for creditor protection in January, and has said it needs to make significant changes to help it restructure in the midst of an unprecedented economic environment.

Company spokesman Mohammed Nakhooda said that company policy prevents him from publicly disclosing which operations are being affected by the layoffs, however he did say that the majority are in North America.

“We are approaching our reductions in a careful and disciplined fashion in order to minimize risk of impacts to our customers,” he said in an email response to The Canadian Press.

“This is a critical first step towards our ability to achieve a more focused and competitive position with a sounder financial base.”

The Toronto-based company won’t be paying severance to the employees who lose their jobs.

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