Heads roll at Nortel; more expected

In a sign of a further shakeup to come, Nortel has dismissed two senior-level executives two weeks after a new CEO took up the reins of the troubled company.

Nortel confirmed that Brian Mc Fadden, a 28-year Nortel veteran, and Sue Spradley, who'd been at the company 18 years, left the telecom vendor Monday. McFadden had been chief research officer and Spradley president of global services and operations.

Nortel gave no reason for their departures. "We thank them for their years of service," a company spokesman said.

McFadden and Spradley follow ex-CEO Bill Owens and Enterprise Division President Malcolm Collins out the door. Nortel recently announced that Owens would be replaced by ex-Motorola COO Mike Zafirovski on Nov. 15.

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In a sign of a further shakeup to come, Nortel has dismissed two senior-level executives two weeks after a new CEO took up the reins of the troubled company.

Nortel confirmed that Brian Mc Fadden, a 28-year Nortel veteran, and Sue Spradley, who'd been at the company 18 years, left the telecom vendor Monday. McFadden had been chief research officer and Spradley president of global services and operations.

Nortel gave no reason for their departures. "We thank them for their years of service," a company spokesman said.

McFadden and Spradley follow ex-CEO Bill Owens and Enterprise Division President Malcolm Collins out the door. Nortel recently announced that Owens would be replaced by ex-Motorola COO Mike Zafirovski on Nov. 15.

Owens’ departure came five months after two ex-Cisco executives that Nortel tapped to be COO and CTO fled the company after only three months, following disputes with Owens. Owens is credited with getting Nortel back on track after an accounting scandal forced the company to restate years of financial results.

Analysts believe the departures of McFadden and Spradley are only the first of a higher management shakeup at Nortel as new CEO Zafirovski installs his own team.

"The new CEO has started taking aggressive measures towards rightsizing NT's business model," states investment firm UBS Warburg in a research note. "We believe these steps are early signs of a more significant reorg with further executive and non-executive reductions and changes expected."

McFadden will be replaced by interim Chief Research Officer Peter Carbone as Nortel looks to hire a new CTO. Carbone had been a vice president in the office of the CTO.

Spradley has been replaced by David Downing on an interim basis. Downing had been vice president of global services and operations.

Nortel also said that John Haydon, vice president of global supply chain management, will oversee the company's global supply chain operations.