Agere to cut 4,000 more jobs, takes $900 M charge
A scant three months after it went public, and only two months after it announced 2,000 job cuts, Agere Systems says it will cut another 4,000 jobs, shut down or sell facilities, and take a $900 million charge this year — $725 million in this quarter. It also revised its guidance for the third quarter.
The restructuring is intended to align the company with market conditions, Agere says.
"We built our business to serve a growing market, which is instead deteriorating," President and CEO John Dickson says in a statement.
Restructuring activities include selling the company's chip fabrication plant in Madrid, Spain, which will account for 1,000 of the layoffs. It also will look at operations in manufacturing plants in Orlando, Fla.; and Allentown, Breinigsville and Reading, Pa. Agere says it also will consolidate several of its satellite manufacturing sites and leased corporate offices.
The restructuring will save the company about $520 million annually, it says.
Agere also slightly lowered its expected revenue for the quarter ended June 30 from $950 million to $920 million. Pro forma net losses, including inventory writedowns and deferred tax benefits, will be 30 cents a share, rather than the "up to" 8 cents a share announced in April.