Nortel Networks posted losses of $861 million, or $1.73 a share, for the quarter that ended December 31st, compared with a loss of $82 million or 19 cents a share for the same quarter last year.

The telephone equipment maker said the steep losses were due in part to a big, one-time charge for the companies plan to cut 2,100 jobs and relocate another 1,000 positions. Though the one-time charges hurt the company’s quarterly reporting, Nortel said the cutbacks should result in annual gross savings of roughly $306 million.

The company also said the quarter included a one-time non-cash tax charge of about $1.12 billion related to changes in the company’s Canadian tax profile.

Nortel reported a 4% decline in revenue to $3.27 billion, from $3.39 billion for the same period a year earlier. The company predicted revenue growth in 2008, in the low single digits.