1,000 Jobs Cuts Coming in Enterprise

By Mark Evans | Published: August 10, 2009

While Mike Zafirovski’s departure as Nortel’s CEO captured the spotlight today, there’s also big news from the enterprise business.

Joel Hackney, who heads up the enterprise business (at least for now given Mike Z. has left the house) said in a Webcast today that 1,000 enterprise jobs will be slashed by the end of Q3 so the business can “meet our target of becoming profitable by Q4″.

None of the 1,500 employees within Nortel Government Services will be affect, which means the 1,000 cuts will come from the 6,400 employees within the rest of the enterprise business.


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  • Major_Tom_2_Ground_Ctl

    wrong assumptions in my mind.

    Acquisition scenario: the only value for Ciena is to leapfrog to 40G / 100G development and to get to Nortel's install base. The rest has no value to them and most of MEN (product, people, etc) would be dumped.

    Now if a Cisco or a Juniper would be interested, that would be a VERY different thing… it is not impossible in the bidding process that such parties get into the game. However, I would not be surprise if Nortel would pull a trick “à la RIM” to block such offers as most MEN execs would be out of a job in little time.

    Private equity scenario: Philippe Morin confirmed the exact same team in place that have been running the shop for the last 5 years. Considering the 40G / 100g success is a fluke (skunk project within the R&D community) and that every decision made by the MEN cabinet failed (Carrier Ethernet, Metro Next, Vz God box, etc..) I don't see how that division will have lasting success. As A. Einstein would put it, insanity is” doing the same thing over and over again and expecting different results” which is what MEN is doing.

    To operate in start up mode, you need more than to state it in a GIS and the same remarks Mark Evan put it in his post on Mike Z' failure can apply to Philippe Morin's management style: “he dithered and bogged himself down in a management style that hinged on consensus. In other words, he doesn’t act as a CEO”.

    So in short, i think the technologies and patents will survive but most of the MEN team will be disbanded shortly after being acquired or we're in for a new episode of the agonizing death of MEN under a new name.

  • ntpurgatory

    Heard nothing from the North American Carrier side…

  • ConnorMcLeod

    Dear Joel,
    please do us a favor. Be a real man, show that you have the courage, take the responsibilty, take your hat and go home!
    You also failed, nobody needs you here anymore, nobody will miss you.
    Good bye man!

  • bigbird1

    Thank you Orbe for cutting me back in March. Is a shame for the others left behind…cutting folks to get bonus and severance…should be illegal.

  • fabrice002

    “Culture wasn't perfect.”

    Well, the culture was okay for the old-line guaranteed ROI telecoms orgs. What Nortel hasn't figured out is how to get out of that mindset.

    Its' 'simplicity' slogans would be laughable if they weren't so pathetic. The processes in place make getting things done extremely inefficient and, in some cases, nearly impossible

  • ntfool

    very true. anyone who survived 2001 can vouch for that

  • NT09

    I'm with you. but judging from the response to this you can tell the Enterprise crew are a very nice and quiet group who are still working hard doing what their captain JH wants them to until the day he kicks them out…..

  • free_agent

    More importantly, any lawsuit liability remains with NN (and goes into the bin with all the other creditors) rather than being taken on by Avaya. After so many years of layoffs, the age-discrimination risks must be getting high.

    But let's get serious, folks. Enterprise would automatically be better off if all the projects that are not turning a profit were terminated immediately. In theory, some projects are in the building phase and are expected to be profitable in the future. But the telecomm/datacomm world is getting *far* more competitive, and only the best products will survive. Hold your hand up if your product makes a profit! I don't see many hands…

  • GoProto

    Cool new buzz word: Hackneyed. I like it. He will go down in infamy…

  • GoProto

    As in tomorrow?

  • ntpurgatory

    As in tomorrow. Apparently some pre-notifications are taking place. Not sure how many tomorrow, but seems to be the prevailing rumour right now…

  • norteltube_com

    How about this news that Mike Z is given 30 million $ as leaving bonus…..

  • TongueInCheek

    That news is pure bullshit. He's getting nothing and stated that on a television interview yesterday.

  • smokeemout

    “You don't build a business with cost cuts, you build it with revenue generation. Of course, that little lesson was lost on the GEniuses.”
    ——————————————————————————
    You need 'good' marketing to do that too.

  • norteltube_com

    Here is what we need to do …

    - All departments/teams need to stop working for any customer next week(Monday) and go on strike, if people think that they will loose jobs then remember it is going to happen…

    - Once the customer will start making point, the buyers will know and the voice will be heard.

    Demand all the executive to pay the bonus money back along with Mike Z 30 Million $

    The law should protect the current employees….

    Listen people we have a power in our hand…Nortel is nothing without us…do not underestimate your power….

  • norteltube_com

    And you believe him…………

  • bijjuk

    What will happen to Billerica team does anybody knows about it ?

  • NT09

    can you be more specific what they might be?

  • TongueInCheek

    You're the one making the accusations, show us your proof, instead of blowing more bullshit out your ass.

  • michaelmcnamara

    It's really a shame that this needs to fall onto the employees, the backbone of Nortel in my honest opinion. I can honestly tell you that every person I met at Nortel over the past 13 years has provided a measurable amount of value to me as a Nortel customer. I can't say the same for other vendors and the vast number of consultants that I've encountered.

  • golfingpokerplayer

    Part 2 of the cuts will be after Avaya buys it. They MUST take all the NGS employees but the sales docket states “a specified number” of enterprise employees. Sounds like 2900, 1400 NGS and 1500 Nortel. More cuts to come – weeeeee !!

  • Waddles

    Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats.
    H. L. Mencken
    US editor (1880 – 1956)

  • freqmgr

    Is part of that mindset what I was told so many times; “Nortel doesn't lead – we are in the second or third row” or “Nortel is happy to be the second or third supplier” or “Nortel follows the market trends so as not to upset customers”?

  • http://www.madaboutbingo.co.uk no deposit bingo

    that was the big effect of global crisis.. more companies and even small business are closing because of it..

  • tiredofitall

    The culture was fine (at least with us rank and file) until CEOs eroded it with fraud, greed, and incompetence. Considering the constant threat of layoffs (60,000+ over 9 years) it is truly remarkable that we have accomplished what we have.

    People around me are still put in real effort every day. Not for, or because of, Hackney or Z, but because we are proud of what we do.

    Perhaps you should avoid broad-sweeping generalizations in the future.

  • justwonderingabootgps

    Yeah I would like to know if it effects BL GPS I hope the new company keeps those talented engineers, who do a fantastic job.

  • GoProto

    Any news on the job slashing front?

  • ntpurgatory

    Talked to Eprise folks and the cuts are underway, however I haven't seen many farewell messages. Actually, I don't think many people are sending internal farewell emails anymore.

  • GoProto

    Thanks. Right, they are probably too distraught and disgusted after all of this tragedy that could have been avoided.

  • name11111111111111111

    There is no unit called Nortel Government Services. I assume the writer is referring to Nortel Government Solutions.

  • rgarg1

    Hi Folks,

    I think it's a fault of everyone whoever works for Nortel.It's just a matter of time that
    recession came and Nortel couldn't control its expenses and all.
    We shouldn't scold hackney and he is also employee like many of us and doing his duty .

  • GoProto

    So, you are blaming all tiers of employees for the downfall of NT? The people hired to manage the company, i.e. the CEO and head of Enterprise should not accept any more responsibility than the non-manangement staff?
    What then is your definition of : Management? and, why are the executives in a company paid more money than the rest of the employees?
    Many companies went through the recession, and came out on the other end, and are not in CH11. Why the doomsday negativity or am I wasting my time asking?

  • tiredofitall

    So what you're saying is it's my fault for not resigning? Honestly?

  • whatnext4nt

    rich :>, fake, copy cat, incompetent, indecisive, inarticulate, mumble, follower, sociopath, egotistical, unimaginative, average intelligence, indiscrete, double standard, old boy network, uninspiring, embarrassment, non-technical, uncompassionate, poor execution, bad copy of Jack Welch, no telecom experience, no real strategy, no apology, no severance, misleading statements prior to Ch 11, bad timing …

    Very ineffective anyway.

    Agreed. This is Reverse Robin Hood: Steal from the poor or middle class and give to the rich. Strait forward transfer of money from the impacted rank and file to Hacker & other top execs:
    more layoffs = more bonuses
    reduced severance payments & salaries = increased bonus
    rank and file can't afford much in legal fees so they will get less as creditors vs. Hacker and buddies unless ex employee class action is successful.

  • whatnext4nt

    Agree. I was just trying to say that Z made the culture much worse than what he inherited, with his mindless application of GE Jack Welch cook book.

  • howelong

    i HEAR HE LIKE IT IN FROM BEHIND WITH A REACH AROUND. MI SSO HONEY

  • madisonvu

    Jayne Ventura, Nortel Western Region Sales VP kills Sales Engineering group laying off 30% engineers. Word says she hardly hit her sales organization.

  • The_Closinator

    Mike Z erected the shrine of Our Lady of Perpetual Reorganization at Nortel, but it is Joel “Pol Pot” Hackney that created The Killing Fields, espousing the Khmer Rouge management philosophy, “To keep you is no benefit, to destroy you is no loss.” and so tomorrow I join the other 999 employees (14.49% of Commercial) cut from Enterprise to assure Joel and other executive reorg experts receive their KEIP equivalent to 20% to 183% of their annual salary. I hope you sleep well at night, Joel.

  • whatnext4nt

    Pavi said “sort of” in almost every sentence in his GIS when NT declared CCAA/CH 11. He also waxed quasi-poetically about what a great chance this was for the company to re-invent itself.

  • prelude09

    hi

  • vycurious

    SOooooo could the demise of Jayne Ventura's employment at Nortel possibly be due to her ongoing affair with ex Microsoft Executive Rick Devenuti?????

  • michaelgood

    Are you just a bitter person or do you have a real basis to your comment?
    Inquiring minds want to know…..
    Just the facts, please.
    Sounds like this is old news and well known.
    Why do you say demise?
    verrrryyyyyycurious

  • michaelgood

    Why does that surprise you?
    Seriously, what R U suppose to do? Kill your our lifeline?
    Not!

  • michaelgood

    Are you just a bitter person or do you have a real basis to your comment?
    Inquiring minds want to know…..
    Just the facts, please.
    Sounds like this is old news and well known.
    Why do you say demise?
    verrrryyyyyycurious

  • michaelgood

    Why does that surprise you?
    Seriously, what R U suppose to do? Kill your our lifeline?
    Not!

  • http://www.bingobabe.co.uk Bingo Babe

    So many companies closing down, sucks!

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