Nortel Networks unveils new R&D plan to staff

OTTAWA, April 2 (Reuters) - Nortel Networks Corp (NT.TO) NT.N laid out a global site plan on Wednesday that determines what type of work will be done where by its 12,000 research and development staff.

In a plan unveiled to employees, North America's largest telecoms equipment maker said the most substantial change will be in China.

Operations there will expand to include work on all four business units from its current market development focus, said David Hudson, Nortel's vice-president of portfolio management.

Ottawa, with its 5,000 engineers, will remain R&D headquarters and is the other "full service site" for Nortel's carrier, business, network equipment, and software and services units.

Toronto-based Nortel will not cut jobs under the plan, which it first hinted at last week, and may need to retrain or relocate workers, but said it has not yet made those decisions.

The company has identified nine centers -- focusing on two or three core skills -- in the United States, Ireland, England, Turkey, India and Korea. Four other "specialty sites" with a more narrow focus are in Canada, the United States and France.

"We're not trying to be all things to all people," Hudson said. "That kind of focus, around a core set of technology assets, I think is important. It says we're ... going to matter for a few really important things and we'll work with partners for the rest."

Smaller offices not included in the plan may eventually see jobs move to designated centers, Nortel said, though it will take years to complete that work.

The company typically reviews its strategic plan in the second quarter and plans product investments in the third.

Nortel shares added 55 Canadian cents, or 7.4 percent, to close at C$8.00 on the Toronto Stock Exchange, and rose 58 cents, or nearly 8 percent, to $7.87 in New York. The stock has lost about 46 percent of its value so far this year.

($1=$1.02 Canadian) (Reporting by Susan Taylor; editing by Rob Wilson)