Avaya has committed to keeping 60% of the North American
employees of Nortel Networks' enterprise business.
Avaya outbid Siemens Enterprise Communications with a
$915m offer for Nortel's enterprise networking operation in a
three-day bidding contest.
The takeover, set for December, could put Avaya ahead of current
enterprise networking market leader Cisco.
The commitment to 60% staff retention is a climb-down from the
75% originally indicated by Nortel enterprise executive Joel
Hackney, according to Canadian
reports.
European legislation means that most Nortel enterprise group
staff in the region will also transfer to Avaya.
Avaya also plans to hire all the employees in a Washington-based
government services operation, which may be linked to concerns
raised by Verizon over servicing for US critical
infrastructure.
Citing concerns largely around public safety and security,
Verizon claimed Avaya was refusing to honour contracts with Verizon
customers, which include the US military, anti-terrorism agencies
and Congress.
Verizon filed an objection in the US Bankruptcy court for the
District of Delaware related to Avaya's bid for Nortel Enterprise
Solutions.
Avaya said in a statement that it was committed to providing
current and future customers with the highest level of service and
support.
"Avaya is engaged in discussions with Verizon to attempt to
negotiate suitable arrangements for the assumption of the contracts
referenced in Verizon's motion," the statement said.
Picture: Rex Features