Massive Cuts at Nortel

Nortel started out as a company best known for manufacturing telephones, including payphones. Now Nortel has long since sold it's phone manufacturing division to a company called Aastra. Along the way they aquired a whole pile of other comapanies and diversified it's holdings, but I would guess that the majority of people (including the majority of people who have sunk money into Nortel) have no idea what exactly Nortel does anymore. Sadly, it seems that Nortel doesn't know, either.

It seems as though you nailed it on the dot..........

What Nortel does today:

1. They are working hard to empty allot more space in
Richardson, Texas

2. Racing with Lucent, for the below a dollar club and
delisting club. At least they didn’t say the stock price was good for shareholders like Corning’s CEO did a few weeks ago. Corning does now trade on fundamentals though.

3. Admitting CISCO makes the best equipment

4. Regretting all the dumb S.O.B.'s they gave $20,000,000.00 a pop to in venture capital to or did we invest you purchase our equipment agreements with for the VC money. HOMER SIMPSON DOH!!J

5. Created a huge bargain basement of equipment very cheap for VOIP, WISP and ISP operations you don’t need to buy New Nortel Equipment.

This is another company were management deserves a kick right between the legs. Some or women so I will not say what I am thinking.

I know a few vendors of Nortel who could add to this sad but stupid list

A Simpson Award is in order here. Ha HA

Actually.... Nortel does alot.....

They....

Manufacture telephone switches, such as the DMS 500.....

Still manufacture telephones, mostly desktop.....

Manufacture a tyraid of optical network and access components....

Manufacture digital codec equipment for digital tv....

Manufacture alot of different VoIP equipment....

And that is just a few things they do.....

They go broke pretty good too. The equipment is not the Northern Telecom Equipment of Old

Many times when a company has to trim it's workforce it trims first in the sales and marketing departments. And as Nortel continues to trim, more and more technical folks are getting trimmed too. This is what's really hard and folks, the bottoming of the telecom market isn't over yet by any means. Many more players are going to go into telecom history.

My poor brother has worked at Western Electric/Lucent for over 30 years. He is 6 years from retirement and he was REQUIRED to put his 401K money into Lucent stock. That stock is now worth $1.67 a share. This makes his 401K plan worth TONS less then what he paid into it. Yet, the higher mucky-mucks still can take home the big bucks!

Henry Schacht, 67 Chairman $1.2Mil.
Patricia Russo, 49 Pres, CEO --
Frank D'Amelio, 43 CFO, Exec. VP --
William O'Shea, 54 Exec. VP, Pres, Bell Labs $3.3Mil.
Robert Holder, 55 Exec. VP $4.2Mil

Now, can we talk about fair?