ONI cuts work force by 16 percent

Optical telecommunications equipment maker ONI Systems announced late Tuesday plans to reduce its work force by 16 percent. The company cut its revenue and earnings expectations last September as a reaction to spending cuts by its telecommunications carrier customers. The maker of gear for telecommunications networks in urban areas now expects revenue between $40 million and $50 million for the third quarter, down from previous estimates between $75 million and $80 million. The San Jose, Calif.-based company also cut fourth-quarter revenue to between $40 million and $50 million vs. earlier projections between $85 million and $90 million. It also expects to post a loss of 17 cents to 21 cents a share for the third quarter, excluding charges. The company will announce earnings Oct. 23.