Tellabs cuts work force by 1,000

Telecom equipment maker Tellabs announced Wednesday plans to reduce its work force by 1,000, further trimming its staff amid tough times for the industry. The Lisle, Ill.-based company will lay off 950 people and offer early retirement to 50 employees. Tellabs will also close its manufacturing facility in Drogheda, Ireland, and move that work into its Shannon, Ireland, and Espoo, Finland, plants. The company will cancel plans to open an office building in Chelmsford, Mass. Tellabs previously announced in April that it had eliminated 450 temporary and contract jobs in April and would not fill 1,100 open positions. The cuts are part of the company's plans to reduce its operating expenses by 5 percent by the fourth quarter. Tellabs expects to save $120 million a year, but to take a $50 million restructuring charge of $50 million for the third quarter. For the second quarter ending in June, Tellabs slightly exceeded lowered expectations and reported earnings of 2 cents a share, excluding items, on revenue of $516 million. That compares with earnings of 39 cents a share on revenue of $801 million for the same quarter a year ago. The company's sales in optical equipment have increased in the first and second quarter from last year as sales of broadband access and voice telecom equipment have pulled back.