Sycamore Cuts 30%

CHELMSFORD, Mass. -- Sycamore Networks, Inc. (NASDAQ: SCMR), in response to current economic conditions and reduced capital expenditures in the global telecommunications market, today announced a workforce reduction of approximately 30 percent. The reduction is expected to be completed over the next several quarters and will affect all functional organizations and multiple geographic locations. The Company expects that this action, when completed, will result in an annualized cost savings in the range of $17.0 million to $18.0 million.

"We continue to face a challenging operating environment that requires us to make difficult decisions," said Daniel E. Smith, president and chief executive officer. "We believe the action announced today, coupled with our ongoing focus on expense control, will help us streamline operations while retaining the resources necessary to meet our ongoing customer commitments, enhance our product offerings, and continue to deliver excellence in customer support."

Sycamore Networks Inc. (Nasdaq: SCMR)

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