LINTHICUM, Md. -- CIENA Corporation (NASDAQ: CIEN) today announced an immediate workforce reduction of approximately 650 employees, or approximately 22 percent of its total workforce, as the Company strives to better align its operations and strategic focus with the current industry environment. "The telecom equipment market has changed dramatically in the last year and we have to adjust to those changes if we are to maintain our leadership position in the industry," said Gary Smith, CIENA's president and CEO. "CIENA's future success depends on our ability to adapt the way we think and the way we run our business in this dynamic environment." CIENA estimates that the actions taken today will generate between $145 to $155 million in annualized cost savings, including approximately $85 to $90 million at the operating expense level, prior to restructuring-related charges. CIENA expects that the majority of the cost savings will be in place by its fiscal third quarter, 2002. Affected employees will be paid through May 24, 2002 and will be eligible for additional severance packages. They also will receive outplacement assistance and training. Ciena Corp.