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Nortel Cuts 3,200 Jobs

The axe continues to fall at bankrupt Nortel Networks Ltd. . (See Nortel Cuts More Jobs.)

Today the company said it will cut an "additional net" 3,200 jobs worldwide during the next several months. These cuts will be in addition to the 1,800 job cuts previously announced. (See The Decline & Fall of Nortel Networks and Nortel Preserves Patent Plan.)

"There is nothing more difficult than notifying employees, and Nortel is extremely conscious of the personal financial burden this will cause affected employees and their families," said Mike Zafirovski, Nortel president and chief executive officer, in a statement.

"Nortel is a company driven by people and innovation," Zafirovski's statement continued. "But with the unprecedented economic environment and resultant impacts on revenues, significant changes are required to regain our financial footing. Tough decisions are being made to restructure the company and work towards a successful emergence from creditor protection."

We'll have more on this story as it develops.

— Phil Harvey, Editor-in-Chief, Light Reading

bollocks187 12/5/2012 | 4:10:53 PM
re: Nortel Cuts 3,200 Jobs Mike Zafirovski has been a death bed nurse for Nortel since joining in November, 2005. His Motorola and GE background certainly helped. When are BoD members going to step up to there role and hire people that understand the Industry and can make good business calls.

Rather than talking about laying off more people up why the heck does he not step down - he has not demonstrated any ability to save Nortel. By all accounts his performance metrics suck the most - fire him.

Stevery 12/5/2012 | 4:10:52 PM
re: Nortel Cuts 3,200 Jobs Again:
If any CEO, analyst, or other big-picture person did not see this meltdown coming when board monkeys were predicting it here mid last year, just what the hell good are they and why are they breathing so much of our air?

Here's a hint for the search committees out there: Obtain personal broker statements and make sure that your candidate went to all cash by early last year. Anybody that didn't is not fit to lead your company or analyze your industry, unless you're really into having people draw straight lines through data.
heretoday 12/5/2012 | 4:10:52 PM
re: Nortel Cuts 3,200 Jobs My condolences to nearly departed. So Mike... Mikey Mike...the Mikester.. the Z man.. How the heck are you going to operate this company?

If you spread the layoffs like peanut butter, evenly across all lines of business, will you be able to do ANY thing effectively? This has been your modis operandi for years.

At what point do you say, you need to cut a business so you can properly staff the remaining lines?

You need to be put up against the wall and be made to answer this question by the good customers who have invested their money and reputation in your products.

And I don't think we need to go into a bit about when the next cuts will be... becuase you know there has to be more.

If you get below say.... 26,000 employees... what is your business continuity plan?
DCITDave 12/5/2012 | 4:10:49 PM
re: Nortel Cuts 3,200 Jobs re: "does anyone undertsand Mike Z's strategy to fix this company?"

I wish I did. What we're seeing now is a sharp contrast to the fit of new hires and market proclamations he made a couple of years ago.

I suppose we just have to look at what the company does and not what it says.

So it's reasonable to have doubts as to Nortel's commitment to the metro optical space specifically, and carrier equipment space generally.

ph
boozon 12/5/2012 | 4:10:49 PM
re: Nortel Cuts 3,200 Jobs does anyone undertsand Mike Z's strategy to fix this company?
I don't, and if I look back at what he did since he took over I don't see anything that helps.
Laying off people reduces costs but reducing costs is not a strategy.
So...Mike Z, if you ever read this post, pls share your wisdom with us!

BTW, I'm sorry for the Nortelers, especially for those who...are not part of the 5000 that are about to leave the sinking boat. I was there myself a few years ago and all the people in my department are far better off now than those who managed to remain. There are plenty of nice and competent persons there. I wish all of them the successes and the professional serenity they deserve.
MMQoS 12/5/2012 | 4:10:48 PM
re: Nortel Cuts 3,200 Jobs With the Philter adding commentary, I'll have to pile on too, having just filed a 5 figure creditor's claim in the bankruptcy court.
In all fairness Mike Z came into a bad situation when he took on the CEO mantle but he had to know what he was getting into. At that time we still had excellent opportunities along with designers and architects who had innovative ideas and I looked for him to encourage the needed risk-taking for the PLM teams as well as their execs. Instead he initiated his GE Black Belt - 6 Sigma BS which was a total distraction at a time when Nortel could ill afford the distraction. I refused to waste my time on it realizing that we had real problems to solve.
I personally brought Nortel into the hottest telco service program in NA and my reward was a termination notice in November. Management just could not grasp the value of new businesses and that was Mike Z's job to drive.
One of the best design companies that I have worked for and I enjoyed working with the Canadians even though their style differed from our California entrepreneurial style.
'Tis a sad situation and the buck stopped with Mike.
Stefan Sip 12/5/2012 | 4:10:47 PM
re: Nortel Cuts 3,200 Jobs Mike Z is clearly the fall guy for Nortel, although he was dealt with a bad hand to begin with. I understand the frustration with Nortel and Mike Z in particular, but what can Nortel do to regain its leadership. There is no area of leadership that Nortel can count on.
heretoday 12/5/2012 | 4:10:46 PM
re: Nortel Cuts 3,200 Jobs Since MikeyZ can cough up a coherent plan I submit this:

Nortel should go on a 60 day liqudation clearence sale like Circuit City in the use. Give the Service Providers and Carriers a last time buy to keep their networks working for a little while.. kind of like what Avici did to AT&T.

And then with something like $100B+ in stranded Nortel gear the Service Providers and Carriers will be force to go on a procurement binge to replace the dead and decaying Nortel gears.

Can you imagine what a $100B+ infusion would do for the Telco business.. can you imagine the migration services you'd need to rip and replace gear.... it's beautiful.

I can see the Alcatel, Seimens, Moto, Huawei, Tellabs, NEC and Cisco vultures circling now.
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