Nortel Networks files for bankruptcy

Nortel Networks files for bankruptcy

Nortel Networks is the largest telephone equipment maker in the North American market.

The company however is not in good shape as they have now filed for bankruptcy.

Nortel still remains one of the largest employers in the Canadian market.

It has around 32,000 employees. This is down from 90,000 in 2000.

Market analyst Gavin Graham spoke about Nortel’s declining fortunes: “It’s obviously a remarkable transformation from where it was as the largest company in Canada worth about 35% of the (Toronto Stock Exchange) in 2000. But this is a reflection of the way that the telecommunications industry has changed.”

UBS analyst Nikos Theodosopoulos added: “They’re avoiding a slow death by doing this. The company is going to have to sell assets and change its focus. It’s not going to be the same company.”