“Up to 400 Nortel employees in the enterprise division’s Toronto, Ottawa, and Belleville, Ontario may be laid off resulting from the sale of that unit to Avaya (News – Alert), reports the Canadian Press.
If true, this development could rekindle a possible election in whose outcome i.e. a defeat of the ruling Conservatives and their replacement by the Opposition Liberals could quash or alter the $915 million deal, which has not yet been approved by the Canadian government. Avaya had won the Nortel (News – Alert) division Monday following a bidding war that led to a significant hike in the price from $475 million the two companies had shook hands on in a stalking horse agreement.
While Nortel has refused to provide any figures about its workforce and the potential impact of the sale announced this week, those familiar with the deal told the wire service said Thursday the enterprise unit currently employs close to 1,000 people in Canada. The hope is that the ultimate number of those forced out the door will be lower than 400, said one source. “
(Source: Nortel Layoffs, Possible Election Loom From Avaya Acquisition)
