Telecom giant Nortel goes into administration

The recession is affecting businesses large and small and in every sector.  The UK arm of technology firm Nortel has gone into administration following the Canadian parent company's file for bankruptcy protection.

Nortel's head office in Toronto has instigated the US Chapter 11 bankruptcy protection while it restructures and aims to come out as a "more focused, financially sound and competitive company."   It would seem that they have been struggling for some time but the credit squeeze has accelerated their demise.

Financial analysts said that this measure gives the company a fighting chance of survival, but in the meantime it is unclear what will happen to Nortel's 2,000 UK employees while administrators Ernst & Young attend to the stricken company.

It is always sad to see a once great company fail, and the effect that it has on people's lives.  I sense that they will be the first of a number of vendors in the technology sector that find life more difficult in a rapidly changing world.

Our redundancy helpline is seeing unprecedented volumes in calls from employers of every size.  When  one of the giant's fall it will no doubt affect their suppliers as well.

Recrion's services in redundancy and outplacements are aimed at minimising the risk and stress to the individual's affected by the global crisis.  For more information contact Katherine Wiid on 01780 484910 or visit www.recrion.co.uk