Nortel axes 700 Devon jobs

Nortel is axing 700 more jobs in Devon

Seven hundred workers are to lose their jobs at Nortel Networks' plant in Paignton, Devon.

The announcement to staff brings the number of Nortel losses in Paignton to almost 4,000 since February.

Torbay's MP, Adrian Sanders, said: "I just hope this really is the last of a line of devastating blows to the local economy."

Last week the Canadian company's quarterly results brought its losses for the financial year so far to more than $20bn.

Earlier this month it warned of 2,000 job losses worldwide, on top of 30,000 already announced.

Nearly 4,000 Nortel jobs have gone in Devon

The Devon cuts were announced to staff on Tuesday afternoon this week.

A public announcement was expected later.

Mr Sanders said he hoped the plant would survive in a reduced form.

"The company insists there is still a role for the plant with about 1,200 people," he said.

"But to lose that number of jobs in less than a year is a significant blow to the economy.

Government aid

"The full effects haven't yet been felt - they've been shielded by the buoyancy of the general economy.

"We are really going to feel the full effects in January and February next year."

He added: "In a weird sort of way we would be better off if the factory closed, in terms of the government support that is automatically triggered.

"The drip-drip effect tends not to be recognised."

Nortel is handing on most of its manufacturing activities to electronics manufacturer C-MAC Industries, of Montreal.