Nortel Networks, the struggling network and communications giant, last night reported that it did not expect meaningful growth in spending until the second quarter of 2002, writes Conor O'Clery.

The Toronto-based company employs more than 1,000 people in Dublin, Galway, Shannon also recently announced 330 jobs cuts at its Northern Ireland operations where it employs 2,750. Last night it reported a net loss of $19.4 billion including tangible assets written down. Nortel said it would discontinue its access solutions operations and exit or sell its ownership interest in the various access solutions businesses over the next 12 months. The company also recorded a $833 million (after tax) charge for restructuring associated with workforce reductions and facilities closures related to business streamlining activities in the quarter.

"While I am disappointed with our results for the second quarter, we have taken the right steps in this environment to strengthen Nortel Networks leadership position," said chief executive, Mr John Roth.