A month and still waiting for Nortel's restructuring plans

Nortel's bankruptcy protection was supposed to expire last Friday but will now be extended until May 1 while the company hems and haws about its plans for restructuring. Meanwhile, the company's employees, creditors and customers nervously wait. Nortel has said it will shed an additional 3,000 jobs, but hasn’t specified which ones. We at Cisco Subnet can't decide if that's cruel or if it is compassionate, given the economy. Keeping employees worried sick for weeks at a time over losing their jobs certainly isn't the nice guy approach. And yet, in this tough economy, maybe working a few more weeks is the kinder situation.

In any case, Bruce Gustafson, Nortel’s vice president for strategic carrier marketing told Reuters that Nortel will of course disclose its plans during the extension period. Nortel also seems to be backpeddling in its decision to sell its metro Ethernet division, something that has reportedly been part of its plans for a year. It may not be able to find a buyer.

Nortel filed for bankruptcy last month.

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