OTTAWA, Feb 9 Nortel Networks Corp. NT.TO, which announced plans to cut 2,900 sta

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OTTAWA, Feb 9 (Reuters) Nortel Networks Corp. , which announced plans to cut 2,900 staff on Wednesday, does not expect to chop any more jobs over the next 24 months, Chief Executive Mike Zafirovski said.

Nortel, one of the world's biggest communication equipment makers, will also shift 1,000 jobs to lower-cost locations such as China, India and Mexico as part of its plan to reduce costs and improve profitability.

Asked if the company plans to cut additional jobs between now and the end of 2008, Zafirovski replied: ''There's none planned, correct.'' ''We said we will be a very competitive enterprise at the end of 2008. What was announced yesterday will position us very well assuming our growth prospects, assuming we're successful with our innovation,'' he told reporters after an Ottawa speech on Thursday.

''We're very committed to reposition Nortel as a winning, great company.'' A big portion of the job cuts will come from Nortel's general and administrative area, where the company is trying to reduce expenses to between 5 percent and 6 percent of revenue from 11 percent.

The bulk of the cuts, to take place over the next two years, will be in the United States, followed by Canada.

Nortel shares jumped for a second day on Thursday, extending gains that followed the job-cut news. The stock rose 4 percent, or C$1.35, to C$34.85 on the Toronto Stock Exchange at mid-session and added $1.13 to $29.39 in New York.

Nortel also said on Wednesday that it is reducing its real estate portfolio, which in combination with the job cuts will save $400 million a year when complete.

Zafirovski is trying to revitalize the company, which has been stung by tougher competition, cost-cutting, sector consolidation and internal woes, including a series of financial restatements.

''If we execute on the plan, then I'm very confident this will be one of the big turnarounds in business history,'' said Zafirovski in his speech. ''It's not going to happen overnight, but the momentum is starting.'' But reaching that goal will require ''many difficult decisions'', he added.

The Toronto-based company said on Wednesday that it expected to report fourth-quarter sales of $3.26 billion and a gross margin slightly above 40 percent of revenue.

Analysts cheered the numbers, but some said Nortel's news also raised questions.

''We worry about the overall growth picture for 2007 -- and you don't cut jobs when growth is accelerating,'' National Bank analyst Tom Astle said in a note to clients.

The analyst lifted his earnings estimates for 2007 and 2008, adding ''nothing like cutting your way to growth!.'' ($1=$1.18 Canadian) REUTERS SBA KN1813

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