Thursday, September 29, 2005

Nortel Restructures into Two Groups

Nortel announced a corporate reorganization of its product, technology, services, operations and sales structure to better meet the needs of global enterprise and carrier customers in the converged marketplace.

The new organization simplifies Nortel's structure into two product groups:

  • Enterprise Solutions and Packet Networks, which will be led by Steve Slattery. Nortel said that in order to better serve global enterprise customers, it is combining core assets such as Ethernet and enterprise telephony, optical, and wireline data into a unified product group to better leverage core technology and hardware platforms for enterprises while fulfilling the requirements of carrier customers.

  • Mobility and Converged Core Networks, which will be led by Richard Lowe. This group consolidates the company's mobile businesses and combines them with core network technologies, reinforcing the wireless market as a vital element of current and future revenue growth.

Nortel is also forming four region-based teams to address the most promising business opportunities, as well as to create market solutions and business arrangements tailored to individual customer requirements. These teams will be led by Steve Pusey, executive vice president, Nortel and president, Eurasia; Dion Joannou, president, North America; Robert Mao, president and chief executive officer, Greater China; and Martha Bejar, president, Caribbean and Latin America and Emerging Markets Strategy.

To meet global customer demand for managed services, Sue Spradley, president, Global Services and Operations, will continue to provide single point of contact solutions to enterprise and carrier customers worldwide. Spradley's team delivers a comprehensive services and solutions portfolio that gives customers the ability to simplify their operations, optimize their networks and better manage costs.

In addition, Nortel announced that Malcolm Collins, president, enterprise networks, will be leaving the Company.

"Convergence is here and now, and our enterprise and carrier customers are demanding partners who can deliver enterprise innovation on carrier-grade platforms. With our carrier and enterprise capabilities, Nortel is uniquely positioned to deliver on this," said Bill Owens, vice chairman and CEO , Nortel. "We're playing to win, and that means having the determination and flexibility to transform our teams, simplify our portfolio, and focus our resources close to our customers, as well as harness both the power and opportunities of network convergence."

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