diff --git a/drivers/net/netxen/netxen_nic.h b/drivers/net/netxen/netxen_nic.h
index f86e050..a9c1fcc 100644
--- a/drivers/net/netxen/netxen_nic.h
+++ b/drivers/net/netxen/netxen_nic.h
@@ -1254,7 +1254,7 @@ struct netxen_adapter {
 	u8 mc_enabled;
 	u8 max_mc_count;
 	u8 rss_supported;
-	u8 resv2;
+	u8 link_changed;
 	u32 resv3;
 
 	u8 has_link_events;
diff --git a/drivers/net/netxen/netxen_nic_main.c b/drivers/net/netxen/netxen_nic_main.c
index 70c05c4..d24e1cb 100644
--- a/drivers/net/netxen/netxen_nic_main.c
+++ b/drivers/net/netxen/netxen_nic_main.c
@@ -94,10 +94,6 @@ static struct pci_device_id netxen_pci_tbl[] __devinitdata = {
 
 MODULE_DEVICE_TABLE(pci, netxen_pci_tbl);
 
-static struct workqueue_struct *netxen_workq;
-#define SCHEDULE_WORK(tp)	queue_work(netxen_workq, tp)
-#define FLUSH_SCHEDULED_WORK()	flush_workqueue(netxen_workq)
-
 static void netxen_watchdog(unsigned long);
 
 static uint32_t crb_cmd_producer[4] = {
@@ -880,7 +876,6 @@ netxen_nic_down(struct netxen_adapter *adapter, struct net_device *netdev)
 	spin_unlock(&adapter->tx_clean_lock);
 
 	del_timer_sync(&adapter->watchdog_timer);
-	FLUSH_SCHEDULED_WORK();
 }
 
 
@@ -1177,6 +1172,9 @@ static void __devexit netxen_nic_remove(struct pci_dev *pdev)
 
 	unregister_netdev(netdev);
 
+	cancel_work_sync(&adapter->watchdog_task);
+	cancel_work_sync(&adapter->tx_timeout_task);
+
 	if (adapter->is_up == NETXEN_ADAPTER_UP_MAGIC) {
 		netxen_nic_detach(adapter);
 	}
@@ -1211,6 +1209,9 @@ netxen_nic_suspend(struct pci_dev *pdev, pm_message_t state)
 	if (netif_running(netdev))
 		netxen_nic_down(adapter, netdev);
 
+	cancel_work_sync(&adapter->watchdog_task);
+	cancel_work_sync(&adapter->tx_timeout_task);
+
 	if (adapter->is_up == NETXEN_ADAPTER_UP_MAGIC)
 		netxen_nic_detach(adapter);
 
@@ -1549,11 +1550,6 @@ static int netxen_nic_check_temp(struct netxen_adapter *adapter)
 		       "%s: Device temperature %d degrees C exceeds"
 		       " maximum allowed. Hardware has been shut down.\n",
 		       netdev->name, temp_val);
-
-		netif_device_detach(netdev);
-		netxen_nic_down(adapter, netdev);
-		netxen_nic_detach(adapter);
-
 		rv = 1;
 	} else if (temp_state == NX_TEMP_WARN) {
 		if (adapter->temp == NX_TEMP_NORMAL) {
@@ -1587,10 +1583,7 @@ void netxen_advert_link_change(struct netxen_adapter *adapter, int linkup)
 			netif_carrier_off(netdev);
 			netif_stop_queue(netdev);
 		}
-
-		if (!adapter->has_link_events)
-			netxen_nic_set_link_parameters(adapter);
-
+		adapter->link_changed = !adapter->has_link_events;
 	} else if (!adapter->ahw.linkup && linkup) {
 		printk(KERN_INFO "%s: %s NIC Link is up\n",
 		       netxen_nic_driver_name, netdev->name);
@@ -1599,9 +1592,7 @@ void netxen_advert_link_change(struct netxen_adapter *adapter, int linkup)
 			netif_carrier_on(netdev);
 			netif_wake_queue(netdev);
 		}
-
-		if (!adapter->has_link_events)
-			netxen_nic_set_link_parameters(adapter);
+		adapter->link_changed = !adapter->has_link_events;
 	}
 }
 
@@ -1628,11 +1619,36 @@ static void netxen_nic_handle_phy_intr(struct netxen_adapter *adapter)
 	netxen_advert_link_change(adapter, linkup);
 }
 
+static void netxen_nic_thermal_shutdown(struct netxen_adapter *adapter)
+{
+	struct net_device *netdev = adapter->netdev;
+
+	netif_device_detach(netdev);
+	netxen_nic_down(adapter, netdev);
+	netxen_nic_detach(adapter);
+}
+
 static void netxen_watchdog(unsigned long v)
 {
 	struct netxen_adapter *adapter = (struct netxen_adapter *)v;
 
-	SCHEDULE_WORK(&adapter->watchdog_task);
+	if (netxen_nic_check_temp(adapter))
+		goto do_sched;
+
+	if (!adapter->has_link_events) {
+		netxen_nic_handle_phy_intr(adapter);
+
+		if (adapter->link_changed)
+			goto do_sched;
+	}
+
+	if (netif_running(adapter->netdev))
+		mod_timer(&adapter->watchdog_timer, jiffies + 2 * HZ);
+
+	return;
+
+do_sched:
+	schedule_work(&adapter->watchdog_task);
 }
 
 void netxen_watchdog_task(struct work_struct *work)
@@ -1640,11 +1656,13 @@ void netxen_watchdog_task(struct work_struct *work)
 	struct netxen_adapter *adapter =
 		container_of(work, struct netxen_adapter, watchdog_task);
 
-	if (netxen_nic_check_temp(adapter))
+	if (adapter->temp == NX_TEMP_PANIC) {
+		netxen_nic_thermal_shutdown(adapter);
 		return;
+	}
 
-	if (!adapter->has_link_events)
-		netxen_nic_handle_phy_intr(adapter);
+	if (adapter->link_changed)
+		netxen_nic_set_link_parameters(adapter);
 
 	if (netif_running(adapter->netdev))
 		mod_timer(&adapter->watchdog_timer, jiffies + 2 * HZ);
@@ -1652,9 +1670,8 @@ void netxen_watchdog_task(struct work_struct *work)
 
 static void netxen_tx_timeout(struct net_device *netdev)
 {
-	struct netxen_adapter *adapter = (struct netxen_adapter *)
-						netdev_priv(netdev);
-	SCHEDULE_WORK(&adapter->tx_timeout_task);
+	struct netxen_adapter *adapter = netdev_priv(netdev);
+	schedule_work(&adapter->tx_timeout_task);
 }
 
 static void netxen_tx_timeout_task(struct work_struct *work)
@@ -1811,9 +1828,6 @@ static int __init netxen_init_module(void)
 {
 	printk(KERN_INFO "%s\n", netxen_nic_driver_string);
 
-	if ((netxen_workq = create_singlethread_workqueue("netxen")) == NULL)
-		return -ENOMEM;
-
 	return pci_register_driver(&netxen_driver);
 }
 
@@ -1822,7 +1836,6 @@ module_init(netxen_init_module);
 static void __exit netxen_exit_module(void)
 {
 	pci_unregister_driver(&netxen_driver);
-	destroy_workqueue(netxen_workq);
 }
 
 module_exit(netxen_exit_module);
