Nortel's Turnaround Still Far From Finished (NT)

Three years after Nortel CEO Mike Zafirovski took over, the Canadian network gear maker is still flailing: After posting a $3.4 billion Q3 loss, Nortel (NT) said it would cut 1,300 employees and shed key executives, including CTO John Roese, one of Zafirovski's first-hired lieutenants who's been one of the company's most public faces. Also gone:

• Chief marketing officer Lauren Flaherty
• Global services president Dietmar Wendt
• EVP global sales Bill Nelson

Nortel also revised its full-year forecast: The company expects 2008 revenue to decline around 4% year-over-year, versus its previous forecast of a 2%-4% decline. Wall Street was looking for a 3.7% decline -- $10.54 billion in full-year sales.

Nortel shares are down 6.8% today to $1.09 -- and down 94% from their 52-week high, reached about a year ago.

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