Fears are growing for 300 jobs at Galway and more than 500 jobs in Northern Ireland as Canadian phone manufacturer Nortel Networks has filed for bankruptcy.

The Toronto-based organisation had been struggling with mounting losses, debts and falling sales.

Today, the company has announced it has obtained an order for creditor protection in Canada, the United States and Europe.

The company also said it has begun a "comprehensive business and financial restructuring", sparking fears over possible job losses.

However, the group said: "normal day-to-day operations are expected to continue without interruption". But workers are unsure of their future in the current climate of major job cuts by companies such as Dell.

The group said it should be in a position shortly to provide an update regarding "consequential filings".

Mike Zafirovski, President of Nortel said: "To all our stakeholders - including customers, suppliers and employees - please know that this decision was not taken lightly.

"I can assure you we explored every possible alternative, sought a variety of solutions, and engaged in extensive consultation with our Board of Directors and many other experts."

See: Pay Cuts And 'Bankruptcy' Highlight Job Fears

(DW/BMcC)