Life After Nortel

By Mark Evans | Published: September 21, 2009

With the disappearance of Nortel seemingly only months away, the obituaries are starting to be written and the critics are starting to opine on what could have or should have been done to save Canada’s flagship high-tech company.

The Wall St. Journal jumps into the fray with a story quoting several people that Canada’s high-tech economy will be dealt a huge setback, particularly given Nortel accounts for about 10% of total R&D spending in Canada.

In many respects, it will be a sad day when all of Nortel’s business units are sold, and the company disappears into the history books. At the same time, however, life goes on.

Many of Nortel’s Canadian employees will stay on with new owners, making good money and paying taxes. Some employees will move on to new and better opportunities, creating new startups that leverage their experience and expertise. And maybe investors will put money into new high-growth opportunities.

When Nortel is no more, it will be sad but not the end of the world. When one doors closes, another one opens.

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  • slk

    This seems be quite a rose colored outlook Mark. From my perspective the job market for high tech remains quite decimated. True, some people will start new companies, some will find other jobs, but a large percentage will be forced to leave high tech, going into the service economy or government. This has already happened over the past 10 years. Every ex-Nortel person knows several people that fall into this category. As the manufacturing and engineering jobs have been going overseas, high tech in Canada has been shrinking, not growing.

    You also seem to fail to realize how high tech works. The larger tech companies act as breeding grounds for new innovation, training new engineers, fostering support companies and spin off companies. It is harder to have the small companies without the larger companies, because nobody is training new engineers.

  • Lookahead

    Very true, and I don't think Mark's comments on Canadian Govet. not saving Nortel is a right decision. Nortel's collapse will have far more profound impact on Canadian high tech industry than what suggested by Mark.

  • ntpurgatory

    and yes, please, now… can we get on with the business of shutting this all down? It's been painful enough – we need that elusive ever over-used word “closure”. 9 days until the end of September and no other stalking horse announcements. Maybe we all just keep working until the money runs out…

  • NortelSouth

    Last friday, all but 1 person in Enterprise of Nortel Argentina had been fired…

    It seems Avaya wants only the installed base…

  • bankrupt_bob

    …not to mention those of us foolhardy enough to “invest” in the “belief” that this company was “not going to really declare bankruptcy protection” but was just “exploring all the options”…. if you catch my drift.

    …this has been like one of those old fashioned toilets that takes gallons and gallons of water, swirls round and round and round and round.and finally, after what seems an eternity, with a huge sucking sound, flushes away the contents ….

  • scalppeeler

    You got that right.
    There's nothing big left in canuckistan visa vie high tech.
    Harpo, McGuinea and municipal politicians have seen to that.

  • scalppeeler

    Not
    Our
    Responsibility
    To
    Exact
    Leverage

    The official Gov't line.

  • nortelex

    There is life after Nortel. You can always find something.

    Too bad for those that invested 20-30 yrs in this company. You would have thought by this time you are set instead of starting over again…It's partly your fault for sticking with a loser but IMO mostly due to bad luck….that's life

  • Nortel watcher

    Yes, you can always find something but remember many people were/are making more money in their NT job than they otherwise would in a similar position elsewhere. Just look at the claims in Epiq and you will notice the lowest weekly salary is equivalent to $95K / year.

  • Nortel watcher

    crap…what about Brazil?

  • scalppeeler

    That's just stupid and utterly false.
    New grad hires at Nortel earn half that.

  • Moose_Chaser

    EXACTLY !

    That is WHY they hire new grads !

    MC

  • gone2moro

    Interesting Oxymoron. Nortel is not life. It's a company. Pay is not a representation of who your are. It is something you have.

    After 13 years at Nortel I moved on to a wonderful company with great people and less pay. I couldn't be happier. It was difficult during the uncertainty of the job hunt and it wasn't very pleasant applying for unemployment……

    but yes….there is LIFE after Nortel and it is sweet.

  • headabovewater

    I don't believe you. The same thing was said abt the office in Brazil a few months ago and after checking with my buddy that works over there none of it was true. So therefore I don't believe you. Take that!

  • Nortel watcher

    scalppeeler,

    I'm going by what's in Epiq…if you ever wondered what your colleagues were making, it's all there….ohh, and when it came to expats, you don't want to know how Nortel provided for those guys…

  • nortelex

    That's because Nortel has a lot of “old” people. Due to hiring freeze most departments dont have fresh blood for a long time…except for the occasional new grad…

    Most people also earned their salary a few yrs back during the boom…most havent had a good raise for awhile except during the Frank Dunn's fraud…

  • likmyassho

    new grads (when we hired them) received ~65k USD.

    let's all move to india… thats where the high tech jobs have gone!!!!!!!

  • marakigirlexnortel

    There is life after Nortel … at least that is what I hope. I left the company recently after 8 years. The insolvency filing events and post events have been particularly tough and painful. I have applied for unemployment in my country and now I am trying to find the right job. But the economy does not help does it? Most of the high tech and traditional companies are facing headcounting challenges.
    I pray for forgiveness to those who have managed to kill Nortel and put a huge number of families in a very delicate situation.

  • scalppeeler

    Who is “we”?
    It certainly is not Nortel.
    Remember Iggy wants to “reach out to China and India” so even
    more jobs can go there.

  • latinamerica

    Check this Thursday then again…

  • Friend007

    So long as there are problems to be solved, there will be opportunities. There will always be better way to solve problems. Life will continue.

  • basft

    But killing Nortel has also killed its retirees. The stakeholders that made it great, are suffering while some non-experienced leadership made big $$$ and lead NT down the path. The Board is also to blame. They approved everything, without saying NO.

  • forgive

    All the “No” people had been kicked out already. Those who can say “yes” to leader will suivive. If anyone ever dare say any idea different from his manager, he/she will be labeled as low performer and got laid off. It is Nortel's “Yes” culture killed Nortel.

  • NortelSouth

    I do not follow your logic…other told something wrong about Brazil and you accused me to lie…

    Do you wanna know if it is true? Pick up your Nortel phone, dial ESN 692-7200 (or +54 11 5550 7200) and ask for the left Enterprise folk and let him tell you what happened to the other Enterprise employees that used to work in Argentina…

  • sofuckingwhat

    Besides the layoffs, local Avaya employees don't have a clue about Nortel employees situation. They said they are counting on local teams to take advantage on the knowledge of both portfolio and installed base. Someone forgot to tell them that there won't be much ones spared…

  • Nortel watcher

    I like your “no bullshit” style.

  • Musicvideos1

    its so bad for those who invest their so many year. but one thing you rightly said When one doors closes, another one opens.
    Acoustic

  • basft

    Agree. The recent 'yes' culture took it to the wall.

  • basft

    Agree. The recent 'yes' culture took it to the wall.

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