Tellabs has embarked on restructuring initiatives to curb costs, including 150 staff, due to sluggish market conditions. The restructure is expected to be completed by the end of Q2, 2010.
The US backhaul and optical vendor said in an SEC filing that it is aligning costs “with customer spending and current market conditions.”
The company said it expected to “record pretax charges in the second quarter of 2009 through the first quarter of 2010 in the range of Euro3.58 million – 4.3 million ($5 million - $6 million) primarily for workforce reductions.”
The company advised that similar costs would be incurred in the third quarter of 2009 and continuing into the fourth quarter of 2010.
In April Tellabs posted a less than expected drop in quarterly earnings due to cost cuts, reporting a 59% fall in first-quarter income to $7 million, attributed to carrier customers pulling back on capital spending.
In October Tellabs slashed 8% of its workforce equating to around 280 US based jobs, citing a similar contraction in market conditions.
