Nortel to Employees: No Severance for You!

There’s obviously a lot of bad things involved with Nortel’s (NT) decision to file for bankruptcy protection but among the most stinging - at least in the short-term - is the that many people who recently left Nortel with severance packages won’t be receiving them. This likely includes many of the senior executives - ex-CTO John Roese and ex-CMO Lauren Flaherty - who were let go last September.

What’s particularly frustrating to many of these employees is Nortel apparently had a 60-day waiting period before they got their severance payment as opposed to giving people their money right away as a goodbye gift/gesture. This meant that many employees who had agreed to severance packages and were waiting for the cash to hit their bank accounts, now get nothing.

Given Nortel still has $2.5-billion in the bank, it must be particularly disappointing for these people not to receive some financial support given they have lost their jobs amid a recession.

For more on Nortel’s severance woes, check out this Globe & Mail story.

Comments

[User 320304:]

Too bad that the failed CTO and CMO will not be getting a severance package. An article about the workers that were at NT for years that will be out in the cold without any severance would be more meaningful.

Jan 16 09:43 AM

[User 320304:]

Too bad for the CTO and CMO, what about the workers that made a 1/4 of their salary that will be out in the cold without any severance. This article is a waste of bandwidth!

Jan 16 09:45 AM

[Former Nort...:]

Actually, I think that the senior weenies who were "let go" received a lump some payment as opposed to the incremental payments. I have to wonder if Z knew that and that's the reason why he let the whole worthless bunch of them go at once. Just wondering.

Jan 22 04:43 PM