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In , Northern began shipping its first digital switching systems , one of the earliest such systems to be sold. Bell-Northern Research was gradually absorbed into Nortel, as it first acquired a majority share in BNR, and eventually acquired the entire company. Northern Telecom was the first company in its industry to announce and to deliver a complete line of fully digital telecommunications products.
In February , Nortel announced its plans to reduce its workforce by 2, employees, and to transfer an additional 1, jobs to lower-cost job sites. Deprived of its Western Electric tie, Northern began developing its own products.
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Under the leadership of CEO John Roth , sales of optical equipment had been robust in the late s, but the market was soon saturated. Bell-Northern Research was gradually absorbed into Nortel, as it first acquired a majority share in BNR, and eventually acquired the entire company.
The Canadian government resisted characterizing its position on Nortel as a bailout. May Learn how and when to remove this template message In , the company name was changed to Northern Telecom Limited, and management announced its intention to concentrate the company's efforts on digital technology.