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News >> Technology >>
Tellium cuts 130 jobs
By siliconindia
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Friday, 10 January 2003, 20:30 IST
OCEANPORT: Tellium Inc. (Nasdaq:TELM) Friday announced that the company would be cut 130 jobs, approximately 41 percent of its workforce in the first quarter.
The company has elected to take the necessary steps to better align ongoing operating costs with current market conditions. The company will record a non-recurring restructuring charge in the first quarter of approximately four to five million dollars, most of which is employee related expenses and will be paid in the first quarter. The workforce reduction will reduce quarterly operating costs by approximately four million dollars beginning in the second quarter, the company claimed in a press release.
"While we continue to believe the worst quarters are behind us from a revenue perspective, we believe it is critical to continuously evaluate and realign our costs. We are committed to revenue growth and we remain focused on accelerating our path to profitability," said Harry Carr, chairman of the board and chief executive officer of Tellium.
"We expect these difficult decisions will enhance our stability as a business, reduce our cash burn significantly, and allow us to remain a technology leader in optical switching."