Multilink to lay off 40% to 45% of its 329 employees, closing some locations; co-chairman and executive VP Dr. Jens Albers resigns

August 9, 2002

2 Min Read

SOMERSET, N.J. -- Multilink Technology Corporation (Nasdaq: MLTC) announced today that it has commenced a corporate realignment program in order to create a more efficient cost structure and realign its business to reflect the current market environment. The corporate realignment program will commence during the third quarter of 2002 and is expected to be substantially complete by the end of the year. The corporate realignment program will entail the following:

  • Multilink will reduce by approximately 40 to 45 percent its 329-member worldwide workforce by the end of 2002. The employee reductions will impact all organizations and locations within the company

  • Multilink will consolidate facilities through the closure of certain locations, and will reduce the level of activity at other locations

  • Multilink expects to record restructuring charges of approximately $13 to $15 million during the third quarter of 2002. The charges will include severance costs related to the reduction in workforce, exit costs for the consolidation of facilities and potential asset impairment charges predominantly related to development software licenses, computer hardware and leasehold improvements

  • Multilink expects to realize annual net savings of approximately $16 to $18 million, beginning in the first quarter of 2003.

"Although the decision to significantly reduce our workforce was extremely difficult to make, it is intended to right-size our corporate resources and focus our personnel on our key business strategies with the objective of maximizing shareholder value," stated Dr. Richard Nottenburg, Multilink's Chairman, President and Chief Executive Officer. Multilink also announced today the planned departure of Dr. Jens Albers, Co-Chairman and Executive Vice President of Multilink. Dr. Albers, a co-founder and significant shareholder in the company, who is a recognized expert in fiber-optic communication, until recently was responsible for the company's European operations and product realization activities. Effective immediately, Dr. Albers will retire from his full-time position as an officer and director of Multilink, but will remain with the company until December 31, 2002, to assist with the transition and serve in an advisory capacity to Dr. Nottenburg. Dr. Albers stated, "While I am departing at year-end to pursue other opportunities, I remain keenly interested in Multilink's success and am an avid supporter of the company. I feel privileged to have had the opportunity to work with the great group of individuals at Multilink." Multilink Technology Corp.

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