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.
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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.