Nortel is rebuilding and hiring again in Ottawa, says the company's CEO.

"We stopped for awhile. Now we're back at it," Mike Zafirovski told technology executives at a sold-out breakfast put on by the Ottawa Centre for Research and Innovation on Thursday morning.

Nortel chief Mike Zafirovski says the company is on track to 'recreate a great company' after a slump forced it to cut its global workforce by two-thirds, including more than 10,000 jobs in Ottawa.
(CBC)

Zafirovski pointed to a four-year communications technology deal that Nortel struck with Microsoft in July as proof that the company is on its way back.

"We're putting the foundation in place. And again, that's all going to drive toward having innovation to be the fuel that's going to put Nortel where it needs to be and recreate a great company," he said.

Zafirovski, who was hired as Nortel's CEO and president a year ago, said the company is building its team, setting goals, and working to improve its culture and practices.

"Whatever we do, those activities will be led out of Ottawa," he said.

Nortel's global headquarters is in Brampton, just west of Toronto, and the company has offices all over the world, including research facilities in Montreal and Calgary.

But its biggest research and development campus remains in Nepean and, with 6,000 employees, it still bills itself as the Ottawa region's largest private-sector employer.

Nortel's research and development headquarters is in Ottawa, and that's where the company stationed John Roese, its new chief technology officer, after he was recruited from the U.S. in June.

Ottawa's economy hit hard by Nortel job cuts

At the start of 2001, the company had more than 90,000 employees worldwide.

Beginning in late 2000, the company's sales plummeted, taking profits and stock prices with them.

In July 2000, the stock was selling for $124.50 a share on the TSX. By the end of 2001, a Nortel share was worth less than $12.

Since then, Nortel has cut its global workforce by two-thirds. Ottawa has lost more than 10,000 jobs.

Claude Laguë, dean of engineering at the University of Ottawa, said the company is taking the right approach and its comeback would have a positive impact on the local economy.

"They went out and they got the right people, in terms of people who have ideas, have a very good understanding of the industry," Laguë said.

"And, hopefully, that means Nortel is on the path of continuous growth and sustainable growth."