Nortel Networks has lowered its Q3/2002 sales forecast from "flat" on Q2's EUR2.77bn to "10% down".

To return to profit by end-June 2003, Nortel has cut its target quarterly revenue break-even from EUR3.2bn to less than EUR2.6bn.

After having 95,500 staff in December 2000, Nortel is cutting another 7,000 staff by end-Q4/2002 to 35,000. This is 17% fewer than the 42,000 it forecast at end-May after announcing 3,500 job cuts from its long-haul business by end-Q3/2002.