Let Us in the Secret, Mr. Owens
Nortel Networks CEO Bill Owens is checking things out in India this week - a crucial market given the company's willingness to wash itself in red ink to snare a big wireless contract. In an interview with Reuters, he said Nortel aims to cut operating expenses to below 30% in 2006. We're all still waiting, however, for how this is going to happen given Nortel has already slashed its workforce down the to bone and sold many non-core assets. There is speculation R&D will be the next target as Nortel attempts to be more focused. This could see the number of R&D facilities shrink to four from seven, and more R&D farmed out to China and India. Nortel could also sell one of its business units. Owens also said revenue will profits and revenue will climb this year. Perhaps he'll shed some more light on his “vision” when Nortel posts first-quarter results later this month. Or maybe it will be articulated at the 2003 and 2004 AGMs in June.
