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 customer sales 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

palaeozoic 12/5/2012 | 3:03:32 PM
re: Tellabs Trims in Access
...if removing 33 people allows Tellabs to "meet our customers' needs faster," what were those people doing that slowed them down so much? Could it be that removing even more people would result in still faster customer responsiveness? Does this mean the ideal company size (for Tellabs at least) is one? And would that one employee be Krish Prabhu or the guy at the loading dock?

Man this is deep. Phil and Ray, good job, keep digging.

5514DD 12/5/2012 | 3:03:31 PM
re: Tellabs Trims in Access I distinctly remember, from working there, that there were more than a few people whom, if removed, would have helped me meet customer needs faster. I'd imagine that some of the 33 would be included in that group. And that the magic number is more than 33.
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