Potentially bad news for Dallas comes from GigaOm today. Stacey Higgenbotham writes today that the news looks pretty grim for Nortel, a Canadian telecom with a significant presence all over the DFW metroplex. Nortel, in addition to having a good amount of operations centered here in Dallas also owns a significant amount of high-rise real estate along the I-75 Telecom Corridor area.
Executives at Nortel, which filed for bankruptcy back in January, had said the company planned to emerge from bankruptcy, but as the process continues that scenario looks less likely. Instead, the Canadian company is being dismantled and sold for parts, pending approval from the bankruptcy court.
As is common when any consolidation occurs, you can look for a large amount of layoffs to ensue following merger. Dallas seems to have been largely and relatively unscathed by the economic collapse, but given that Nokia also maintains a large presence here in the DFW area, there will be inevitably a great deal of overlap between the two following the merger, and likely a number of layoffs from both sides.