Ciena reduces staff; stays focused on K2

As yet another reminder of the changes sweeping through the industry, Ciena today laid off 450 employees or 17% of its staff.

“This is really hard for us,” said Denny Bilter, vice president of marketing communications for Ciena.

The employee reductions span the entire company but primarily focused on administrative employees in the Baltimore office, according to Bilter. Those employees will be paid through November 19, 2002.

By making the cut, Ciena expects to generate $50 to $55 million in annualized cost savings. That number includes $25 to $30 million at the operating expense level. Also associated with the cut, Ciena expects to take a fourth quarter restructuring charge between $75 to $80 million.

“We aren’t taking our R&D and chopping it up,” said Bilter. “And we are not capping development of the K2 product as others have said.”

The company intends to continue focusing on getting business with incumbent carriers, according to Bilter.