Plans to reduce its worldwide work force by about 1,000 people, close two facilities, and further cut operating expenses

August 23, 2001

1 Min Read

LISLE, Ill. -- In order to align its expenses with reduced spending by major communications carriers, Tellabs (Nasdaq: TLAB - news) plans to reduce its worldwide work force by about 1,000 people, close two facilities and further cut operating expenses. Tellabs plans to lay off 950 employees, and 50 employees have voluntarily accepted the company's early retirement offer. Tellabs plans to close a manufacturing facility in Drogheda, Ireland, and consolidate that work into other manufacturing facilities in Shannon, Ireland, and Espoo, Finland. Tellabs also will discontinue plans to open an office building in Chelmsford, Mass. These steps are designed to meet Tellabs' target of a further 5% reduction in operating expenses by the fourth quarter of 2001. In total, these and earlier actions will reduce operating expenses by about $120 million on an annualized basis. Tellabs expects to take a one-time restructuring charge of about $50 million against third-quarter 2001 earnings. "As customers continue to reduce capital spending, we have less work for employees and must take difficult steps to preserve Tellabs' long-term health," said Richard C. Notebaert, president and chief executive officer of Tellabs. "As we go forward, we are concentrating resources on our customers' highest priorities. The key to Tellabs' long-term success will be to stay relentlessly focused on what customers really need from Tellabs -- to enhance our existing products, successfully introduce new products and expand internationally."Tellabs Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like