This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Nortel Shuffle Gets Under Way

Nortel's (NT) new hard-charging chief isn't wasting any time putting his stamp on the company's rebuilding efforts.

Barely two weeks into his job as Nortel's CEO, Mike Zafirovski has shaken up the organization by firing two top executives: research chief Brian McFadden and services head Sue Spradley. The company says the "organizational changes" were effective Monday.

Some analysts say Zafirovski's initial strike seems to take aim at some of Nortel's poorly performing businesses. McFadden had previously led the company's optical networking unit, and Spradley once ran Nortel's old-line telecom equipment division.

More cuts are likely, says UBS analyst Nikos Theodosopoulos in a research note Wednesday.

"We believe these steps are early signs of a more significant reorganization with further executive and non-executive reductions and changes expected," writes Theodosopoulos.

A Nortel representative said there are no plans for layoffs in these groups but added that the company was constantly reviewing its business strategy.

Others see the move as a positive sign for the company's turnaround.

These are the "first steps in what we believe will be a large reorganization of Nortel to increase efficiency and focus on markets where it stands a reasonable chance of making money," Charter Equity Research analyst Ed Snyder writes in a note Wednesday.

McFadden was replaced by Peter Carbone, who will fill in until the company finishes its search for a chief technology officer. And Spradley will be replaced by David Downing, who will run the company's global services unit.

McFadden was unavailable for comment, and Spradley did not return a call.

Zafirovski joined Nortel after the company's tortuous journey through an industry collapse and a bonusgate scandal. The latter brought on several accounting fraud investigations and led to the dismissal of at least a dozen executives.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs