New cuts at Nortel are making some people in Ottawa nervous the city is on the brink of another tech meltdown.
The tech giant announced plans Monday to slash 1,300 positions, extend a hiring freeze and implement a freeze on salaries until at least 2009. Corel, Mitel and many smaller firms in Ottawa have also cut 4,000 positions in all.
One tech business owner told CTV Ottawa Tuesday he sees a lot of fear and uncertainty in the sector, especially in the U.S., which is forcing him to take a long hard look at staff cuts in the capital.
That sentiment is shared across the country, according to an Ottawa lawyer with Laberge Weinstein.
"I think whether a company is doing very well or poorly, they are all looking. They're at least holding back on new expenses, limiting travel, limiting big business development and people are ready to cut," said Debbie Weinstein, who advises tech companies across the country.
One expert who studied the last tech crash and examined how layoffs affected people and created social and economic problems within the community, told CTV Ottawa he hopes the government sees the warning signs of what he calls a "perfect storm."
"I think we have to realize that this is serious and we need to get our head around the problem and government needs to wake up and look at taking action -- this requires a serious response," said Edward Jackson, the associate dean in public affairs at Carleton University.
With a report from CTV Ottawa's Paul Brent
