By BridgeNews Telecommunications equipment maker Tellabs Inc. will eliminate another 1,000 jobs, close a plant and discontinue plans to open new offices as it tries to deal with reduced demand from phone companies. The Lisle, Ill.-based company said ...
ByBridgeNews Telecommunications equipment maker Tellabs Inc. will eliminate another 1,000 jobs, close a plant and discontinue plans to open new offices as it tries to deal with reduced demand from phone companies. The Lisle, Ill.-based company said it will lay off 950 of its 8,000 workers. A further 50 employees have accepted a voluntary retirement plan. Those job cuts are in addition to the 550 permanent employees and 450 contract jobs Tellabs said in April it planned to eliminate. The company also is closing a factory in Drogheda, Ireland, and will abandon plans to open an office building in Chelmsford, Mass. "As customers continue to reduce capital spending, we have less work for employees and must take difficult steps to preserve Tellabs' long-term health," says Richard C. Notebaert, president and CEO of Tellabs. The moves will reduce operating expenses by 5% by the fourth quarter. Including cost-cutting measures announced earlier in the year, the company will have reduced expenses by $120 million per year. The reduction amounts to about 14% of 2000 operating expenses of $840.4 million. Tellabs will take a charge of $50 million against this quarter's earnings to cover the cost of the layoffs and factory closing.
