Nortel to cut hundreds of jobs with WiMax unit
Several hundred jobs, mostly in Ottawa, are expected to be cut. Because Nortel is currently under bankruptcy protection, those employees who are let go will receive no severance pay or benefits.
Edit: After speaking with someone who has friends at Nortel, it turns out the "no severance package" is technically not correct, but is practically accurate. Employees let go now are offered the same monetary package as those let go before bankruptcy protection, but the employee has to get in line behind the secured creditors who get to pick over the bones first before they can see any money. Whatever is left of the company's liquidated assets is split among the unsecured creditors, such as those with the severance package, only after the secured creditors have been paid off. As a result, they MIGHT receive a PORTION of the severance package, but not for a year or more. They're only hope is that the company becomes profitable again (so that they can call in the package), or that there are sufficient assets remaining to cover their package (Nortel's current debt is $1 billion, but has $4 billion in assets).