Tellabs Trims in Access

Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) is consolidating its North American access operations and cutting staff in the process.

A spokewoman for Tellabs says the company is "doing this to reduce costs, improve efficiency, and meet our customers' needs faster."

The company confirmed today that that Stephen McCarthy, executive vice president of global customersales and services, is leaving. McCarthy, a former Ameritech executive, has been inspiring the new life at Tellabs since 1999.

In addition to McCarthy's departure, 33 people have been laid off in North America as of August 15. Another 22 job cuts are on their way in Finland where Tellabs says it is talking to its work council about the restructuring.

Tellabs' North American access operations will be consolidated into three locations -- Petaluma, Calif., Dallas, and Ashburn, Va. That division includes what remains of the company's acquisitions of Advanced Fibre Communications (Petaluma) and Marconi's North American Access Group (Dallas).

Carl DeWilde, executive VP of broadband products, will assume McCarthy's duties, and Daniel Kelly, executive VP of transport products, will watch the broadband side of the business.

— Phil Harvey, Managing Editor, and Raymond McConville, Reporter, Light Reading