Tellabs buries more AFC bods; Juniper and US LEC hit headcount highs; LR's Lucent scoop comes home to roost

March 14, 2005

4 Min Read
Headcount: Notes From Naperville

Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) continues to be a busy place these days as it digests the last few morsels of Advanced Fibre Communications Inc. (AFC) (and spits some of them out).

Prompted by Headcount's calls, the company confirmed last week that it has cut "fewer than 50 people" in its ongoing battle to keep expenses in line with revenues. Some ex-AFC employees grouse that all of Tellabs' cuts lately have come out of that former company's hide, but Headcount couldn't independently confirm the allegation.

We have, however, found out that Brian Gawick has joined Tellabs as its new VP of engineering for its FTTP product lines.

Gawick replaces Jorge Valdes, a former AFC executive, "who has left the business," according to a source familiar with the matter.

Interestingly, Gawick doesn't come from the FTTP game. He was previously the senior VP of product planning at Fujitsu Network Communications Inc. (FNC), where he had worked since 1992.

Another old Tellabs hand, Bruce Ross, is moving up in the FTTP ranks. Ross, a Tellabs employee since the late 70s, was promoted to VP of product line management. And, yes, he's in Naperville, Ill. -- at Tellabs HQ.

Just last month, Jeff Rosen, another AFC veteran, stepped down as Tellabs' executive vice president of global operations. Rosen, too, was also replaced by a Tellabs man (see Rosen Resigns From Tellabs).

Of course, that's the way mergers go. In the end, there are always winners and losers. But are the winners the ones who get the bump or the ones who have to stay and stitch all the pieces into one big company?

While you chew on that mind vitamin, we'll move on by bringing you the most interesting hirings and firings from the past few days:

  • Juniper Loop: Through acquisitions and growth, Juniper Networks Inc. (Nasdaq: JNPR) is at a three-year headcount high, according to figures from its most recent annual report. The company added more than 900 employees after it bought NetScreen, and it had already added about 400 back in 2002 when it ate Unisphere. "We had 2,948, 1,553, and 1,542 employees as of December 31, 2004, 2003, and 2002, respectively," the company's report states.

  • Sweet Jain: Big Bear Networks has found a successor to Mark Thompson, its former CEO who joined Fairchild Semiconductor International (Nasdaq: FCS) back in November 2004 (see Big Bear Grabs CEO). The new CEO at Big Bear is Amit Jain, who founded Versatile Optical Networks, a company that was acquired by Vitesse Semiconductor Corp. (Nasdaq: VTSS) back in 2001. Jain remained at Vitesse's Optical System Division until it was acquired by Avanex Corp. (Nasdaq: AVNX) in 2003. Despite his move to Fairchild, Thompson remains on Big Bear's board of directors.

  • Carrier Class: If CLEC extinction is the rule, US LEC Corp. (Nasdaq: CLEC) is the exception. Though the company is multiplying its losses at around the same clip that it's multiplying its revenues, it has, so far, at least kept itself from shrinking (see US LEC Acquires StarNet).

    The carrier employed 1,065 workers as of December 31, 2004, and has steadily boosted its headcount for at least the last five years. Its headcount has increased 30 percent in five years, but it has added 18,400 business-class customers -- a 468 percent increase -- during that same time period. One huge help in that effort is that the carrier doesn't resell ILEC access lines, nor does it provide service via Unbundled Network Element Platforms (UNE-Ps).

  • We Remember September: Last week, wire services reported Lucent Technologies Inc. (NYSE: LU) was going to close a research facility in Landover, Md., where it builds its PacketStar PSAX device. The company told the Associated Press it will ship the 110 jobs to India, and also cut 40 engineering jobs in Westford, Mass.

    Sound familiar? It should. Light Reading nailed the story back in September 2004, when it correctly reported that Lucent's offshoring activities were increasing. "Sources say Lucent is in the process of streamlining the staff of its Landover, Md., business unit that works on the PacketStar PSAX access concentrator products, a product Lucent acquired in 1998 when it purchased Yurie Systems for $1 billion," Light Reading's report stated (see Lucent Offshoring Wave Hits Hard). "This could result in the loss of as many as 100 jobs, although much of the maintenance of this product is being moved to new engineers in Bangalore, India."

    We wrap up, as usual, with a summary of other industry appointments and disappointments from the past few days:

    • PowerDsine Board Member Resigns

    • Anda Closes In on Polaris

    • KPN Lays Out IP Migration Plan

    • Phasebridge Hires Execs

    • Nortel Appoints Sr Managers

    • Ex-Cisco Exec Named Nortel COO

    • Daines Becomes WWP CTO

    • Anritsu Names New President

    • AMCC Appoints President and CEO

    • Arroyo Raises $12M, Drops CEO

    That's all for now. But it doesn't have to be. Keep those news tips coming to [email protected].

    — Phil Harvey, News Editor, Light Reading

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