Net loss is biggest in seven years

Nortel Networks Corp., North America’s largest maker of phone equipment, posted its biggest net loss in seven years and announced plans to cut 1,300 jobs, or 18% of its workforce, as customers scale back budgets.

The Toronto-based company’s third-quarter loss was $3.4 billion, or $6.85 a share, contrasted with last year’s third-quarter profit of $27 million, or 5 cents a share. Sales fell 14% to $2.3 billion.