Alcatel Optronics expects third-quarter sales to plunge 50 percent sequentially, leaving the optical-network component maker no other choice but to eliminate two-thirds of its staff.
Alcatel Optronics, an Alcatel subsidiary, plans to cut 1,050 jobs by mid-2003. After the cuts the company will employ roughly 500 people. The restructuring effort should enable the company to have a sales break-even point of $38.7 million by the end of 2003.
The company expects revenue to decrease 50 percent sequentially, up from a previous forecast calling for a sequential drop between 20 percent and 30 percent. In the second quarter, Alcatel Optronics posted sales of $24.6 million.
Parent company Alcatel has announced plans to cut roughly 43,000 jobs. News of this latest round of cuts dragged down Alcatel's stock price to a new 52-week low. As of 11:44 a.m. EDT, the company's shares were shedding 8 percent, trading at $3.29.