Tellabs to Cut Jobs, Shut Ireland Plant
Tellabs Inc. said it’s eliminating 1,000 jobs, or nearly 12% of its work force, and closing a plant in Ireland because of continued weak sales.
The telecommunications equipment maker said about 700 of the jobs are in the United States, including about 350 at the company’s Bolingbrook, Ill., manufacturing plant and Lisle, Ill., headquarters. Those cuts were effective immediately.
An additional 156 jobs will be cut when the company closes its plant in Drogheda, Ireland, by the end of the year. The remaining layoffs will be at other plants in Europe.
The company said it expects to take a one-time restructuring charge of about $50 million against third-quarter earnings as a result of the moves, which are part of an effort to reduce operating expenses 5% by the fourth quarter. Combined with earlier actions, the company expects to reduce its operating expenses by about $120 million.
Tellabs shares fell 1 cent to $13.60 on Nasdaq.
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