Tellabs to Cut 150 More
The company announced the cuts in a Securities and Exchange Commission (SEC) filing this afternoon.
Tellabs offered no specific reason for this latest restructuring, saying in the filing that it's trying "to align our costs with customer spending and current market conditions." It's not a huge chunk of the company. Tellabs had 3,228 employees at the start of the year -- minus 60, in layoffs that were initiated in February, according to the company's 10-K filing.
The layoffs will be spread across the next several months, ending in the second quarter of 2010, and during that time, Tellabs will take charges totaling $5 million to $6 million. Tellabs also expects to make cash payments of another $5 million to $6 million spread between the third quarter of 2009 and the end of 2010.
Tellabs had already started the year by lowering its first-quarter forecast. Even so, CEO Rob Pullen told analysts in April that Tellabs was still open to the idea of making acquisitions. (See Transport Sales Slump Hits Tellabs and Tellabs Goes Shopping .)
Tellabs's filing today didn't say anything about the company's second-quarter results. Tellabs has predicted revenues will be flat to slightly up, which would put revenues in the range of $362 million to $395 million.
— Craig Matsumoto, West Coast Editor, Light Reading