Nortel, the Canadian equipment maker that filed for bankruptcy protection last month, has announced a further 3,200 job losses. The new reductions, which will be carried out over the next several months, are in addition to the 1,800 reductions previously announced. Nortel’s board has also approved management’s recommendation to not pay any bonuses for last year. Nortel said it would continue its ‘Annual Incentive Plan’ this year for all eligible full and part-time employees, but the scheme is being modified to permit quarterly rather than annual award payouts. “This will provide a more immediate incentive for employees upon the achievement of critical shorter-term corporate performance objectives, including specific operational metrics in support of customer service levels as the company works through its business and financial restructuring,” it said in a statement.

Toronto-based Nortel filed for creditor protection in Canada, the US and Europe on 14 January this year, having seen its shares sink to penny stock status on the Toronto Stock Exchange. However, in a statement on the company website at the time, president and CEO Mike Zafirovski said the company “is still very much in business and our commitment to customers remains unwavering.” High-profile customers such as Verizon, Sprint Nextel and BCE are reportedly maintaining their ties with Nortel in the near-term.