Mike Zafirovski is stepping down as president and CEO of Nortel Networks Corp., the insolvent Toronto-based company announced Monday.

Mike S. Zafirovski announced Monday his intention to step down as president and CEO of Nortel. (Sean Kilpatrick/Associated Press)

The former high-flying global telecommunications firm did not reveal his successor as CEO. Instead, it will ask for a court-appointed monitor to be given greater responsibility.

"We've reached a logical departure point," outgoing Nortel chairman Harry Pearce said. "Mike made a commitment to see the process through the stabilization of the company [and] sale of its largest assets…. He has done so."

Pearce, who was instrumental in bringing in Zafirovski from Motorola Inc., is also leaving the company, to be replaced as chairman by David Richardson. Five more board members are also moving on, which means the company's board of directors will be reduced to three members.

Zafirovski said in a release he believes the company is at a natural transition point after the recent sale of its wireless division and the scheduling of other asset sales under bankruptcy-court protection.

The company is undergoing a court-supervised liquidation of its assets, including the sale of its wireless-network business to Swedish telecom giant Ericsson for $1.13 billion US.

Originally, Nortel was aiming to keep its core operations and continue as a smaller technology vendor. However, it has since changed course and is selling its various business units and assets in a series of transactions.

"There is still much work to be done," Richardson said.

Zafirovski arrived at Nortel in 2005 as a highly touted chief operating officer from Motorola. His departure marks the end of a four-year struggle to turn the company around.

With files from The Canadian Press