Wednesday, January 14, 2009

Nortel files for bankruptcy protection in U.S

Awful news this morning in Ottawa, and in the telecoms industry in general.

Nortel has filed for bankruptcy protection in U.S..

Nortel is the biggest private sector employer in Ottawa, and I have a lot of friends that work there, despite the 16 rounds of layoffs they've already been through.

My thoughts are with everyone that are wondering about the future of their jobs right now.

UPDATE: The Economist had an article about this in this week's issue called "The bigger they come - Canada’s technology icon is unlikely to emerge from bankruptcy protection"

Here's a quote from the article:

Still, Nortel could become a model. Its filing was a “strategic move”, says Richard Windsor, an analyst at Nomura Securities. With $2.4 billion in the bank, Nortel could have limped along for a while. But it went for bankruptcy protection now, he says, so it would not have to do it in total desperation when the money had run out. Will it emerge in one piece? Probably not, says Mr Windsor. Its parts are likely to be sold, perhaps to Huawei Technologies, a Chinese rival which has been looking to boost its presence in North America for some time. It is a sorry end for a once-proud Canadian technology icon, but this way investors will at least get some of their money back.

1 comment:

  1. It's sad for those who worked hard.

    It's too bad for those who were paid 150k to stay home and do nothing (and I know who) and will have trouble finding jobs because they spent their leasure time doing nothing or playing.

    It's good for you for their bosses.