Nortel's CEO has moved to try to re-assure customers that they
should stick with the company following its chapter 11
bankruptcy.
In a
message
to customers and partners, CEO Mike Zafirovski says, "Nortel is
filing for creditor protection in Canada, the United States and
Europe in order to undertake a comprehensive business and financial
restructuring.
"I firmly believe these are the right steps toward a solution
for our company. This process will enable Nortel to become the
highly focused and financially sound communications leader it
should be."
He stressed, "Most importantly, Nortel is still very much in
business and our commitment to customers remains unwavering. We
will continue to invest in leading edge R&D to deliver the
value our customers expect from us."
He said the bankruptcy protection move would "put Nortel on
sound financial footing once and for all. It will allow us to deal
decisively with our cost and debt burden, restructure our business
and narrow our strategic focus in an effective and timely
manner".
Nortel has not recovered since being affected by the dot.com
bubble burst and the financial fraud discovered in its results
going back some years. Since then, it has continued to shed
thousands of jobs.
With the recession continuing and the chapter 11 move expected
to result in further attempts to cut operational costs, more jobs
cuts are expected to result.
Companies with Nortel service contracts may start to wonder who
will be left to deliver the quality of service they are paying
for.