Scientific-Atlanta begins restructuring

Cable equipment vendor Scientific-Atlanta has begun its previously announced company-wide restructuring by laying off about 400 employees, or 6% of its worldwide workforce. Most of the reductions are effective immediately, although some will occur over the next several months, the company said.

S-A expects the restructuring to save about $40 million per year. The company will take a one-time, pre-tax charge of about $15 million, or 6 cents per share, in the first half of the fiscal year. S-A, like most cable vendors, has been particularly hard hit by a sluggish economy and the bankruptcy of financially troubled customer Adelphia Communications.

-- Jim Barthold, senior editor