Tellabs Cuts Work Force by 1,000
Tellabs today announced that it is laying off 1,000 people worldwide and closing two facilities in the United States.
Citing the continuing doldrums in spending by communications carriers, Tellabs said it will close its manufacturing facility in Round Rock, Texas, and a research and development facility in Plymouth, Minn., and that overall 800 employees in the United States will be released.
This is the second round of layoffs for Tellabs this year. In August the company shed 950 employees.
The company said it hopes to reduce quarterly operating expenses to $180 million in the first quarter of 2002, a reduction of approximately 26 percent from the same period the previous year.
"Im saddened by this difficult step, but it is a necessary prelude to our long-term plan to reinvent Tellabs, renew our growth and adjust to the new realities of the communications marketplace," said Richard C. Notebaert, president and chief executive officer of Tellabs in a prepared release.
Tellabs also said it will record restructuring and one-time charges of about $150 million in the fourth quarter of 2001.
Tellabs stock rose 1.54 to 16.99 by midday Friday.