Corning to Layoff 1000 More

CORNING, N.Y. -- Corning Incorporated (NYSE:GLW) todayannounced plans to reduce its worldwide optical fiber workforce byapproximately 1,000 employees by the end of 2001 in response to thecontinuing downturn in the telecommunications sector.These reductions will include hourly and salaried employees primarily atmanufacturing locations. Corning will begin to notify those employeesimpacted by today’s announcement over the next few weeks. The company hasalready communicated plans to employees for short-term Labor Day holidayshutdowns at its Wilmington and Concord, North Carolina manufacturingfacilities.Today’s action is being taken to match overall operations with the weakeningdemand for optical fiber and cable, primarily in North America and Europe.James B. Flaws, Corning’s chief financial officer, said the company has seena sudden slowing in orders across all fiber product lines, and now expectsoverall market growth for optical fiber in 2001 to be significantly lessthan the previous 15 percent outlook. Corning said its unit shipments ofoptical fiber and cable in the second half of the year will be less than thesame period in 2000. Corning continues to see a downward trend in demand forits LEAF® and MetroCor™ fiber products, however the company still expectsits premium fiber products, as a percentage of total fiber volume, to be at20 percent or less for the year. “While year over year fiber pricing hasremained stable through August, we expect that average pricing for the yearcould be down by the previously disclosed zero to five percent range,” Flawssaid.Flaws added, “We are continuing to deal with the poor short-term visibilityacross the telecommunications market and we need to react quickly tochanging market conditions. We remain confident in the robust outlook forbandwidth demand, and continue to believe that this demand will fuel growthin our telecommunications business in the future.”“This has been an extremely difficult decision, but it is required due tothe softening of worldwide demand for optical fiber in the second half of2001,” said Alan Eusden, senior vice president, Corning Optical Fiber. “Weare adjusting the pace of our manufacturing operations to match the overallmarket, and reducing staffing levels to control operating costs. We trulyregret having to take these actions and we understand that there will be asignificant impact on individuals, families and communities.”Today’s announcement brings Corning’s 2001 reductions to approximately 8,000positions or about 20 percent of its total global workforce of 41,000 at thebeginning of the year. Corning anticipates that the costs of thesereductions will be included in the previously announced $300 million to $400million restructuring charge which will be recorded in the second half ofthis year.Corning Inc.