BRAMPTON, Ontario-Nortel Networks said it entered into agreements with five manufacturing services companies to outsource and/or divest certain manufacturing and repair operations.
Earlier in the week, Nortel announced it is joining its wireless and wireline businesses, resulting in the unified global business unit Nortel Networks Wireless and Carrier Solutions.
San Jose, Calif.-based Sanmina Corp. will acquire Nortel’s assets associated with the electromechanical subsystems design and manufacturing operations for its wireless business. The agreements with Sanmina also include employing some of the electromechanical subsystem designers from Nortel’s former wireless operations in Calgary, Alberta, and Chateaudun, France.
Under terms of the agreements, Nortel said the five manufacturing companies will employ about 2,300 of the 3,000 employees who were part of operations identified for divestiture. Of the remaining 700 employees, about 200 will remain with Nortel and about 500 will have their positions eliminated.
John Roth will re-assume the office of president following the departure of Dave House, who was appointed president of Nortel Networks following the acquisition of Bay Networks Inc. last year. Nortel appointed F. William Conner its first chief marketing officer.
The company also announced the Vancouver Stock Exchange has accepted its formal application to delist its common shares from the Vancouver Stock Exchange. The delisting took effect at the close of trading July 30.
