Nortel Networks is bringing in Accenture as part of its efforts to “transform” its financial organization structure.
Nortel made the announcement on Friday afternoon.
Accenture will be charged with putting in place “structure, processes and systems in line with Nortel Networks’ goal of developing a ‘best practices’ finance organization,” Nortel said in a statement.
Nortel has been mired in financial difficulties this year. Its CEO was fired, and several members of financial services were also dismissed. Nortel is currently under government investigation and faces several lawsuits as it continues to review finances and restate earnings.
Bill Owens, the new CEO, said the move to hire Accenture is part of his efforts to reform and reshape Nortel’s management.
“We are determined to deliver on our commitment of providing shareholders with the highest integrity standards of accounting processes and a fully transparent financial organization,” Owens said.
On Thursday, Owens said in a speech that he was determined to drive down costs. Nortel already is cutting 10 percent of its workforce, or 3,500 jobs, and selling off most of its manufacturing operations.
“You’ll see Nortel reducing, with this recent action, down to below 35 percent, as a percentage of revenue, our cost structure,” he said, according to Reuters. “And as you go forward you’ll see us getting below 30 percent, below 25 percent.”
Owens made the speech in Ottawa, Canada. Later in remarks to reporters, Owens said in 2005 cost reductions would produce the 25 percent mark, Reuters said.
Among the cost savings he sees is a 2-4 percent reduction in costs through installation of SAP software to handle payroll, inventory and budget planning.