Editing Nortel (section)

==== Owens and Zafirovski ====

After Dunn's firing, retired United States Admiral [[William Owens (Admiral)|Bill Owens]]&nbsp;– at the time a member of the board of directors&nbsp;– was appointed interim CEO.<ref>{{Cite news |date=2004-04-28 |title=Nortel fires CEO Dunn |url=https://www.theglobeandmail.com/report-on-business/nortel-fires-ceo-dunn/article1136462/ |access-date=2024-01-31 |work=The Globe and Mail |language=en-CA |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131165801/https://www.theglobeandmail.com/report-on-business/nortel-fires-ceo-dunn/article1136462/ |url-status=live }}</ref> Nortel Networks subsequently returned to using the Nortel name for branding purposes only (the official company name was not changed). Nortel acquired PEC Solutions, a provider of information technology and telecommunications services to various government agencies and departments, in June 2005 and renamed it [[Nortel Government Solutions]] Incorporated (NGS).<ref name="NGS">{{cite web
 | author = Nortel Government Solutions
 | title = Corporate Information: Nortel Government Solutions
 | publisher = Nortel Government Solutions
 | year = 2008
 | url = http://nortelgov.com/corporateinfo.asp
 | access-date = June 1, 2008
 | archive-url = https://web.archive.org/web/20080704173649/http://www.nortelgov.com/corporateinfo.asp
 | archive-date = July 4, 2008
 | url-status = dead
 }}</ref><ref name="N-PEC">{{cite news
 | title = Nortel to Buy PEC Solutions For $448 Million
 | newspaper = Washington Post
 | url = https://www.washingtonpost.com/wp-dyn/content/article/2005/04/26/AR2005042601432.html
 | access-date = January 11, 2012
 | date = April 27, 2005
 | first = Griff
 | last = Witte
 | archive-date = October 3, 2018
 | archive-url = https://web.archive.org/web/20181003155028/http://www.washingtonpost.com/wp-dyn/content/article/2005/04/26/AR2005042601432.html
 | url-status = live
 }}</ref> [[LG Electronics]] and Nortel formed a [[joint venture]] in August 2005, with Nortel owning 51%, to offer telecom and networking solutions in the wireline, optical, wireless and enterprise areas for South Korean and global customers.<ref>{{Cite web |title=Long-Term Potential In LG-Nortel Joint Venture |url=https://www.forbes.com/2006/06/16/nortel-networks-0616markets15.html |access-date=2024-01-31 |website=Forbes |language=en |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131165801/https://www.forbes.com/2006/06/16/nortel-networks-0616markets15.html |url-status=live }}</ref>

Peter Currie, previously the Chief Financial Officer of the [[Royal Bank of Canada]], was named CFO of Nortel in 2005, having previously served as Northern Telecom's CFO in the 1990s. Gary Daichendt, the former Chief Operating Officer of [[Cisco Systems]], was hired as president and COO, and was expected to succeed Owens as CEO. Shortly afterward, Daichendt appointed ex-Cisco [[Chief Science Officer]] Gary Kunis as [[chief technology officer]]. 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.<ref>[https://nationalpost.com/related/links/story.html?id=2180163]{{dead link|date=August 2010}}</ref> At the year's end, directors Lynton "Red" Wilson and John Cleghorn retired from the board.

[[Mike S. Zafirovski]], who had served as president and CEO of [[General Electric|GE Lighting]] and then as [[Motorola]] President and COO, succeeded Owens as president and CEO on November 15, 2005.<ref name="MW-Zafirovski">{{cite press release
 |title        = Nortel Announces Mike Zafirovski as President and CEO
 |publisher    = Nortel Networks
 |date         = October 17, 2005
 |url          = http://www.ccnmatthews.com/news/releasesfr/show.jsp?action=showRelease&actionFor=562714
 |access-date   = June 1, 2008
 |archive-url  = https://web.archive.org/web/20060225094836/http://www.ccnmatthews.com/news/releasesfr/show.jsp?action=showRelease&actionFor=562714
 |archive-date = February 25, 2006
 |url-status     = usurped
}}</ref> Motorola filed a suit against Zafirovski's hiring, alleging that his new position would break the terms of the [[non-disclosure agreement]] he had signed. Nortel agreed to pay $11.5 million on his behalf to settle the lawsuit.<ref name="SUITSETTLE">{{cite web|last = McMillan|first = Robert|title = Motorola, Nortel settle Zafirovski dispute|work = infoworld.com|url = http://www.infoworld.com/article/05/10/31/HNmotorolanortel_1.html|access-date = September 5, 2006|date = October 31, 2005|archive-url = https://web.archive.org/web/20051204150616/http://www.infoworld.com/article/05/10/31/HNmotorolanortel_1.html|archive-date = December 4, 2005|url-status = dead}}</ref> Nortel also paid out US$575 million and 629 million common shares in 2006 to settle a class-action lawsuit that accused the company of misleading investors about the company's health.

Currie stepped down as Executive Vice President and CFO in early 2007.<ref>{{Cite web |last=Bale |first=Chris |date=2007-02-07 |title=Peter Currie to Step Down as CFO of Nortel |url=https://taxgrotto.etaxjobs.com/2007/02/peter-currie-to-step-down-as-cfo-of-nortel/ |access-date=2024-01-31 |website=Tax Grotto |language=en-US |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131170347/https://taxgrotto.etaxjobs.com/2007/02/peter-currie-to-step-down-as-cfo-of-nortel/ |url-status=live }}</ref> In February 2007, Nortel announced its plans to reduce its workforce by 2,000 employees, and to transfer an additional 1,000 jobs to lower-cost job sites.<ref>{{Cite web |date=7 February 2007 |title=Nortel cutting another 2,900 jobs; stock jumps |url=https://www.cbc.ca/news/business/nortel-cutting-another-2-900-jobs-stock-jumps-1.636887 |access-date=31 January 2024 |website=CBC |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131170344/https://www.cbc.ca/news/business/nortel-cutting-another-2-900-jobs-stock-jumps-1.636887 |url-status=live }}</ref> The Securities and Exchange Commission filed civil fraud charges against Nortel for accounting fraud from 2000 to 2003; the fraud was allegedly to close gaps between its true performance, its internal targets and Wall Street expectations. Nortel settled the case, paying $35 million, which the Commission distributed to affected shareholders, and reported periodically to the commission on remedial measures to improve its financial accounting.<ref>{{Cite web |title=SEC.gov {{!}} SEC v. Nortel Networks Corporation, et al., Civil Action No. 07-CV-8851-LAP (S.D.N.Y.) and SEC v. Frank A. Dunn, et al., Civil Action No. 07-CV-2058-LAP (S.D.N.Y.) |url=https://www.sec.gov/enforcement/information-for-harmed-investors/nortel#:~:text=On%20October%2015,%202007,%20the,the%20unrealistic%20revenue%20and%20earnings |access-date=2024-01-31 |website=www.sec.gov |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131170344/https://www.sec.gov/enforcement/information-for-harmed-investors/nortel#:~:text=On%20October%2015,%202007,%20the,the%20unrealistic%20revenue%20and%20earnings |url-status=live }}</ref>

Nortel announced plans in February 2008 to eliminate 2,100 jobs, and to transfer another 1,000 jobs to lower-cost centres.<ref name="CBC-200802-jobcuts">{{cite news|work=CBC News |title=Nortel cutting 2,100 jobs |publisher=Canadian Broadcasting Corporation |date=February 27, 2008 |url=https://www.cbc.ca/news/business/nortel-cutting-2-100-jobs-1.735974 |access-date=June 1, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080606023743/https://www.cbc.ca/news/business/nortel-cutting-2-100-jobs-1.735974 |archive-date=June 6, 2008 }}</ref> As part of the reductions, Nortel shut down its Calgary campus in 2009.<ref name="CBC-200805-Calgary">{{cite news|work=CBC News |title=Nortel to close Calgary operations |publisher=Canadian Broadcasting Corporation |date=May 27, 2008 |url=https://www.cbc.ca/news/canada/calgary/nortel-to-close-calgary-operations-1.727467 |access-date=June 1, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080531001026/https://www.cbc.ca/news/canada/calgary/nortel-to-close-calgary-operations-1.727467 |archive-date=May 31, 2008 }}</ref>

During its reporting of third quarter 2008 results, Nortel announced it would restructure into three vertically-integrated business units: Enterprise, Carrier Networks, and Metro Ethernet Networks. As part of the decentralization of its organization, four executive positions were eliminated, effective January 1, 2009: Chief Marketing Officer – Lauren Flaherty; Chief Technology Officer – John Roese; Global Services President – Dietmar Wendt; and Executive Vice President Global Sales – Bill Nelson. A net reduction of 1,300 jobs was also announced.<ref name="PR-Nortel2008Q3">{{cite press release
 |title       = Nortel Reports Financial Results for the Third Quarter 2008
 |publisher   = Nortel Networks
 |date        = November 10, 2008
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100248517&locale=en-US
 |access-date  = November 11, 2008
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224082619/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100248517&locale=en-US
 |archive-date = December 24, 2009
}}
</ref> As its stock price dropped below $1, the [[New York Stock Exchange]] notified Nortel that it would be [[Listing (finance)#Delisting|delisted]] if its common shares failed to rise above $1 per share within 6 months.<ref>{{cite news|url=http://www.bizjournals.com/triangle/stories/2008/12/08/daily53.html?ana=from_rss|title=Nortel gets delisting warning from NYSE|date=December 12, 2008|work=Triangle Business Journal|access-date=December 14, 2008|archive-date=April 16, 2012|archive-url=https://web.archive.org/web/20120416045041/http://www.bizjournals.com/triangle/stories/2008/12/08/daily53.html?ana=from_rss|url-status=live}}</ref> Rumours continued to persist of Nortel's poor financial health, amid the [[late 2000s recession]], and its bids for government funds were turned down.<ref>{{cite news |url=https://nationalpost.com/rss/story.html?id=2164470 |title=Who killed Nortel? |work=National Post |date=January 9, 2009 |access-date=August 14, 2010 }}{{dead link|date=March 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

There is suspicion that industrial espionage and knockoff Asian products brought down Nortel or at least accelerated its demise. An extensive analysis by University of Ottawa professor Jonathan Calof and recollections of former Nortel executive Tim Dempsey have placed the blame mostly on strategic mistakes and poor management at the company.<ref name="nationalpost.com">{{Cite news |last=Blackwell |first=Tom |date=February 20, 2020 |title=Did Huawei bring down Nortel? Corporate espionage, theft, and the parallel rise and fall of two telecom giants |work=[[National Post]] |url=https://nationalpost.com/news/exclusive-did-huawei-bring-down-nortel-corporate-espionage-theft-and-the-parallel-rise-and-fall-of-two-telecom-giants |access-date=October 17, 2023 |archive-date=18 October 2023 |archive-url=https://web.archive.org/web/20231018113715/https://nationalpost.com/news/exclusive-did-huawei-bring-down-nortel-corporate-espionage-theft-and-the-parallel-rise-and-fall-of-two-telecom-giants |url-status=live }}</ref>