Wednesday, February 07, 2007

Nortel Slash & Burn

Since the nineties Nortel has been cutting its workforce and shipping jobs off shore, 56,000 workers cut, and it still has not gotten it out of its fiscal spiral downwards. Why should this be any different.

Nortel to slash 2900 jobs in latest cost-cutting

Nortel Networks Corp. will slash 2,900 jobs, or 8.5 percent of its workforce, over the next two years and shift another 1,000 employees to lower-cost locations like China, India and Mexico as North America's biggest maker of telephone equipment struggles to shore up its profits.Nortel, which currently employs about 34,000 workers, said on Wednesday This is the latest round of job cuts at Nortel, which once employed about 90,000 people. Last June, the company said it would cut 1,100 jobs and alter its pension plans in an attempt to contain costs.

The layoffs are the latest in a series of cost-cutting moves made by Chief Executive Officer Mike Zafirovski since he took over the beleaguered company in November of 2005. Since the collapse of the telecom and “dot com” markets in 2001-2,
Nortel has cut more than 60,000 jobs.

As usual let's look at how much the guy at the top makes while his company bottoms out and he slashes jobs.

Nortel Networks Corp.(1) Zafirovski, Mike $37,429,297 Expand details
Salary:$305,785 Bonus:$0 Subtotal:$305,785 % chg
Other:$28,698,591 Share Units:$8,424,921 Option Gains:$0
TOTAL:$37,429,297 New option grant: 5,000,000 ($10,695,000)
Industry:Information Technology Legend

And the reason for Nortel's collapse was not productivity nor the crash of the bubble but criminal capitalism.

Nortel CFO Leaves (Again)

Nortel chief financial officer Peter Currie is stepping down this spring to take on "new challenges."

The company announced Tuesday that Mr. Currie will be stepping down on April 30 of this year, although he will continue to provide advice to the company to ensure a smooth transition.

Currie took over the CFO chair one year ago to help Nortel recover from several years of financial scandals and mismanagement. Between February 1999 and April 2004, two of the three men who held the title of Nortel CFO were fired for cause.



NORTEL: Canada's Enron

Criminal Capitalism

We Need a Living Wage

The Phoney Debate On Net Neutrality


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