Tellabs Inc. reported a profit of $6 million in the fourth quarter, marking a 78% drop from the $29 million it brought in during the year-ago period. Due to the lagging profits, the company said it would cut 225 employees from its workforce, in addition to the 125 employees that lost their jobs in September’s restructuring.
The company said the job cuts are part of a $100 million savings plan that it hopes to achieve by year’s end.
“Last year, nearly half of Tellabs revenue came from new products added since 2003,” outgoing President and CEO Krish Prabhu said. “Gross profit margins are trending up, and Tellabs’ plan will reduce annual costs and operating expenses by $100 million. Unfortunately, implementation of the plan will impact Tellabs’ workforce.”
Tellabs’ fourth-quarter revenue rose 3% to $469.1 million. The company expects current market conditions to continue throughout the year, and projects first-quarter revenue to be in the mid-$450 million range.
Company stock was down more than 4% to $6.12 on the news.
Tellabs finances dip, to cut 225 jobs
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