After speculation running rampant that Nortel was going to slash between 3,000 to 10,000 positions, it will be interesting to see how investors and analysts react to what can only be seen as a modest plan to eliminate 1,300 workers, or 4% of the workforce.
With Nortel deciding to cut few employees than expected, the HR spotlight will be focused on the departures of four senior executives: chief marketing officer Laurent Flaherty, chief technology officer John Roese, global services president Dietmar Wendt, and executive v.p. global sales, Bill Nelson. In particular, the decision to get rid of Roese will be scrutinized given he came to Nortel with little carrier experience.
This can only be seen as a major disappointment for CEO Mike Zafirovski, who recruited the four executives as part of his extensive management overhaul when he took over from ex-CEO Bill Owens.
The 1,300 job cuts are part of a plan to slash costs by $400-million in 2009, and will include the elimination or consolidation of executive and management positions; salary and hiring freezes, and “other broad” actions to cut costs and discretionary spending.
“We are acting quickly to become a simpler and leaner company, with the greater flexibility and responsiveness required to manage our business in a rapidly changing marketplace.” said Zafirovski said in a statement.
As far as the sale of the metro Ethernet network unit, nothing was announced so you can read into that what you will.
Nortel also unveiled a new operating structure that will go into place on Jan. 1, 2009:
- An enterprise business headed by Joel Hackney, which will include voice, data and unified communications technology, advanced software and the associated services and solutions.
- Two business units – carriers networks and metro Ethernet networks – led by Richard Lowe and Phillippe Morin, respectively. Both units will be supported by a global sales organization led by Darryl Edwards.
Here’s the Nortel press release, which includes the third-quarter results. The financial highlights include a cash balance of $2.3-billion and the decision to suspend dividend payments on its series 5 and 7 preferred shares.
maybe but if things are sooooo productive then you should be churning out products like crazy. I have heard working from home is quite rampant, with no accountability. 'some' people definitely are abusing the system not completing their hours, taking days off sick or work from home and regularly mind you with no notice period.
ask your manager if anybody is found guilty whether they should be terminated with 2 weeks like in other companies. you will get your complacent answer. others have because they complained.
Nortel Shuffles Executives, Cuts Just 1,300 Jobs
After speculation running rampant that Nortel was going to slash between 3,000 to 10,000 positions, it will be interesting to see how investors and analysts react to what can only be seen as a modest plan to eliminate 1,300 workers, or 4% of the workforce.
With Nortel deciding to cut few employees than expected, the HR spotlight will be focused on the departures of four senior executives: chief marketing officer Laurent Flaherty, chief technology officer John Roese, global services president Dietmar Wendt, and executive v.p. global sales, Bill Nelson. In particular, the decision to get rid of Roese will be scrutinized given he came to Nortel with little carrier experience.
This can only be seen as a major disappointment for CEO Mike Zafirovski, who recruited the four executives as part of his extensive management overhaul when he took over from ex-CEO Bill Owens.
The 1,300 job cuts are part of a plan to slash costs by $400-million in 2009, and will include the elimination or consolidation of executive and management positions; salary and hiring freezes, and “other broad” actions to cut costs and discretionary spending.
“We are acting quickly to become a simpler and leaner company, with the greater flexibility and responsiveness required to manage our business in a rapidly changing marketplace.” said Zafirovski said in a statement.
As far as the sale of the metro Ethernet network unit, nothing was announced so you can read into that what you will.
Nortel also unveiled a new operating structure that will go into place on Jan. 1, 2009:
- An enterprise business headed by Joel Hackney, which will include voice, data and unified communications technology, advanced software and the associated services and solutions.
- Two business units – carriers networks and metro Ethernet networks – led by Richard Lowe and Phillippe Morin, respectively. Both units will be supported by a global sales organization led by Darryl Edwards.
Here’s the Nortel press release, which includes the third-quarter results. The financial highlights include a cash balance of $2.3-billion and the decision to suspend dividend payments on its series 5 and 7 preferred shares.
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