Nortel Networks is planning to pull out of a number of
networking markets in a strategy it hopes will see its to return to
profitability.
New president and chief executive officer Mike Zafirovski has
said that the company only intends to focus on networking markets
where it already has around 20% of the market, or where it feels it
can achieve this share.
Where it doesn’t, or it fails to achieve this threshold, said
Zafirovski, Nortel will either pull out or consider going into
partnership with another company.
Zafirovski also said that he wanted Nortel to concentrate more
on services and applications, rather than rely on its
bread-and-butter networking hardware markets.
Still emerging from a financial scandal that has hampered the
firm for several years, and currently involved in a headcount cull
in an attempt to cut costs, the company last week announced it
would have to re-state yet another set of its accounts.
More details on this financial re-statement, again linked to the
false accounting scandal that goes back to the beginning of the
decade, will follow at a later date, said Nortel.