Peter W. Both Garys were concerned about the overall direction of Nortel, especially when compared to Cisco, their previous employer. Just three months later, Daichendt resigned after both his restructuring plan and his suggestion that Owens and Currie leave the company immediately were rejected by the board of directors. Kunis quit shortly thereafter. In Nortel discovered that hackers they believed to be in China had free rein within the Nortel network for more than a decade before their collapse.
Mike S. In February , Nortel announced its plans to reduce its workforce by 2, employees, and to transfer an additional 1, jobs to lower-cost job sites. The Securities and Exchange Commission filed civil fraud charges against Nortel for accounting fraud from to ; the fraud was allegedly to close gaps between its true performance, its internal targets and Wall Street expectations.
Nortel announced plans in February to eliminate 2, jobs, and to transfer another 1, jobs to lower-cost centres. During its reporting of third quarter results, Nortel announced it would restructure into three vertically-integrated business units: Enterprise, Carrier Networks, and Metro Ethernet Networks.
A net reduction of 1, jobs was also announced. The Canadian government resisted characterizing its position on Nortel as a bailout. Nortel initially hoped to re-emerge from bankruptcy, implementing a retention bonus plan in an effort to retain its top executives during the restructuring period.
With the worsening recession and stock market decline deterring potential companies from bidding for Nortel's assets, and many of Nortel's major customers reconsidering their relationships with the restructuring company, [84] in June Nortel announced that it no longer planned to emerge from bankruptcy protection, and would seek buyers for all of its business units.
The trust supports pensioners' medical, dental and life insurance benefits, as well as income support for some groups such as long-term disability recipients. Nortel's In January , a pact between the U. Nortel made telecommunications , computer network equipment and software. It served both general businesses and communications carriers landline telephone , mobile phone , and cable TV carriers.
Technologies included telephonic voice equipment, fiber optics , local wireless , and multimedia. In September , Julian Assange was discovered in the act of hacking into the Melbourne master terminal of Nortel. In , The Wall Street Journal reported that in , Nortel discovered that crackers gained almost-complete access to Nortel's systems.
Beginning in at least they accessed documents including emails, technical papers, research, development reports, and business plans. The breach was not properly addressed by the time the company filed for bankruptcy in Hackers working from Chinese IP addresses had allegedly used seven passwords of Nortel executives, including a former CEO, to penetrate networks owned by the company. Brian Shields, a former senior systems security advisor for Nortel, led an internal investigation into the breach and exposed rootkit software on at least two machines in that allowed hackers to control them remotely and monitor email.
Despite the original discovery in and the subsequent investigation that led to the rootkit detection in , Nortel allegedly ignored the problem and failed to disclose it to potential buyers of its business. Avaya and Genband both acquired parts of Nortel, and some employees used old Nortel machines connected to the new companies' networks.
Although Avaya says it has dealt with the issue, Shields says "it's despicable that Nortel didn't say anything", leaving it up to him to inform the new company of his investigation. Nortel refused to comment on The Wall Street Journal report, but former CEO Mike Zafirovski , in charge between and , claimed the company "did not believe it was a real issue".
While unable to offer conclusive proof Shields stated that "When came along, then it was a downward slide. And that coincidentally is the year when Huawei started selling on the international market. How coincidental.
Mr Robinson was appalled that Canadians who already lost billions on Nortel on the stock market would be asked for even more money through their taxes to support Nortel. This money was previously available to Nortel, and no special funding was made available. There have been reports of financial irregularities at Nortel's Health and Welfare Trust. In , both the U. Securities and Exchange Commission and the Ontario Securities Commission laid charges against former senior financial officials from Nortel including Frank Dunn who was fired from Nortel in Frank Dunn was promoted from chief financial officer to replace John A.
That's its expertise. Surtees is the author of Pa Bell , which includes an extensive history of the telecommunications business in North America and Nortel's evolution from its roots as Northern Electric. It started as a workshop owned by Bell Canada, making parts on contract that had been designed in the United States. In the s, Bob Scrivener, a top Bell executive, had to decide whether to "whip Nortel into shape," Mr.
Surtees said. The other option, in Mr. Scrivener's words, was "to junk it. Scrivener chose the first alternative and Nortel became a widely respected innovator, leading the push to digital technology in the late s and early s and fibre-optic products in the s. It expanded worldwide. He said the integration of design and manufacturing under one roof began with the concept of a vertically integrated enterprise, developed in the midth century in the United States during the nascent days of the telecom business.
As recently as 30 years ago, Nortel then Northern Telecom was a one-stop shop. It was also owned by Bell Canada, the phone company it made gear for.
One important factor was that few parts, if any, back then were available "off the shelf," Mr. Angus said. The development of powerful computer chips in the past decade has changed that significantly and communications equipment is now much more based on public standards rather than proprietary ones.
Angus said, remarking on the end of Nortel's manufacturing in Canada and around the world. But, Mr. Angus said, "there's a logic in saying there's no longer a specialized skill to produce those components. The change, he said, began in the s. Charges would be laid in The audited results wouldn't be released until June Restructuring announced.
Nortel says it will cut 1, jobs and create in restructuring moves intended to improve profitability. Another 2, jobs to be cut globally in and , as the next step in business realignment. It also announced plan to shift 1, positions to lower-cost locations. March 12 : U.
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