BRAMPTON, Ontario-Just two weeks after Mike Zafirovski took the reins as Nortel Networks Ltd.’s new chief executive, two longtime employees have been shown the door.
Nortel confirmed that Brian McFadden, chief research officer, and Sue Spradley, president of global services and operations, were let go Nov. 28. McFadden, 51, had worked at Nortel for 28 years while Spradley, 44, was with Nortel for 18 years. The company declined to comment as to why McFadden and Spradley were dismissed. The company also declined to say whether more executive reorganizing is planned.
The company named Peter Carbone, its vice president and chief architect, interim chief research officer and said Spradley’s duties will be split between John Haydon, vice president of global supply chain, and David Downing, vice president of global services and operations.
Analysts with UBS Investment research commented that Zafirovski has taken aggressive measures toward right-sizing the company’s business model, adding it expects a more significant reorganization with further executive and non-executive reductions.
Zafirovski took over Nov. 15 after ironing out a settlement with former employer Motorola Inc. Motorola had filed lawsuits alleging Zafirovski’s move to Nortel’s top seat would create a breeding ground for misappropriation of trade secrets and breaches of multiple non-compete, confidentiality and no-solicitation agreements. The lawsuit sought an injunction to stop Zafirovski from joining Nortel for two years, but was settled as Zafirovski agreed to uphold the agreements he signed with Motorola and to repay Motorola $11.5 million, which was part of his separation payment from Motorola. Nortel said it would fully reimburse Zafirovski for his repayment to Motorola.
