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Nortel Details Job Cut Plan: Page 2 of 4

Nortel will cut 950 jobs in Canada, 650 jobs in Europe, Middle East and Africa and 250 elsewhere.

Nortel said it plans to post special charges of $450 millionfor its overall restructuring plan, with 35 percent of that counted this year and 65 percent in 2005.

The Brampton, Ontario-based company said it expects cost savings of about $500 million in 2005, "which are expected to increase on an annualized basis beyond 2005 as the full impact of the work plan is realized."

The company said overall costs of the work plan are higher than previous estimates mainly due to more extensive real estate actions, which are expected to result in greater long-term savings.

The telecom equipment giant is under investigation for possible accounting fraud in the United States and Canada.