Tellabs cuts 1,000 jobs and shuts two units
Tellabs will cut 1,000 jobs and close two facilities as part of its plan to reduce operating expenses by 5 percent by the fourth quarter of 2001. It also will take a $50 million one-time restructuring charge in the third quarter.
The equipment maker says it will close its Drogheda, Ireland, manufacturing plant and consolidate its work into other plants in Shannon, Ireland, and Espoo, Finland. It also is aborting plans to open a Chelmsford, Mass., office.
Tellabs will lay off 950 employees; another 50 have accepted early retirement offers, it says.
Customers' reduced spending meant less work for employees, says President and CEO Richard C. Notebaert in a statement.
Tellabs estimates the cuts, plus earlier moves, will save $120 million a year.
Earlier this year, the company announced 550 other job cuts, and noted it would not fill another 1,000 or more positions.