Naperville -headquartered network equipment manufacturer Tellabs has announced restructuring plans which will result in the loss of 530 employees. The company also plans to stop new development on its LTE product.
"In a climate of economic uncertainty, Tellabs needs to align expenses with revenue," said Rob Pullen, CEO and president, Tellabs. "Unfortunately, our restructuring will affect about 530 people. We will reduce expense and stop new development work on the Tellabs SmartCore 9100 LTE product, while continuing to support Tellabs SmartCore 9100 WiMax customers."
As a part of its restructuring move, Tellabs will close its research and development facilities in California, Canada, Pakistan, and India.
The company recorded a net loss of $5 million in the fourth quarter that ended Dec. 31, 2011. That compared with a net loss of $11 million a year earlier. Revenue fell 23 per cent to $317 million from $411 million.
Tellabs will restructure its business and recognize a pretax charge, substantially all of which is expected to be incurred in the first quarter of 2012, currently estimated at $107 million, the company said.
"We'll address customers' needs through our next-generation portfolio of products and services for the smart mobile Internet, including Tellabs Mobile Backhaul Solution, Tellabs Packet Optical Solution and professional services such as Tellabs Insight Analytics Services."
No comments:
Post a Comment