Nortel Networks won bankruptcy court approval to sell its Enterprise Solutions division, a deal that will lead to more job cuts than initially indicated.
Avaya, based in New Jersey, won approval from a bankruptcy judge in Delaware this afternoon to buy the division for $915 million, Bloomberg News reported.
On Monday, officials with the companies said that Avaya planned to keep about 75 percent of the division's workers. But that's of the division's global workforce, which was about 8,000 people at the beginning of the year.
In North America, Avaya expects to keep about 60 percent of the division's workers, Nortel spokesman Pat Cooper said today. The percentage is higher in Europe, where labor laws restrict layoffs.
The Enterprise division's top executive, Joel Hackney, is based at Nortel's Research Triangle Park campus, where the company still has about 1,850 workers. Nortel officials have declined to comment how many RTP workers are part of the Enterprise division.
The Avaya deal is expected to be completed later this year. Nortel filed for bankruptcy in January and has been selling its parts to repay creditors.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or
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