New York: Nortel Networks Corp., North America’s largest maker of phone gear; plans to cut about 8.5% of its workforce and move about 1,000 jobs to India, China and Mexico in the next two years after previous reductions failed to make the company profitable. Nortel will eliminate 2,900 jobs in high cost locations, potentially cutting costs by as much as $400 million (Rs17.62 crore) a year, the Toronto-based company said in a statement. Nortel has now cut at least 7,250 jobs since September 2004. Chief executive officer Mike Zafirovski is aiming to revive Nortel after a $2.58 billion loss in 2005 and three financial restatements in as many years.Nortel shares jumped $2.33 or 9% to $28.26 on Wednesday on the New York Stock Exchange , the biggest increase since 8 August 2005. They have dropped 6.4% in the past year. The job cuts, coupled with a plan to reduce the company’s real estate, may cost as much as $390 million, Nortel said. About three-quarters of the expenses will be recorded in 2007.