Sycamore axes workers, lowers guidance

Sycamore Networks on Thursday announced it would lay-off 240 employees--roughly a quarter of its workforce--and lowered its financial guidance for the quarter ending next week.

Sycamore said its first quarter 2001 revenues would fall within the $20 million to $25 million range, well below the $32.6 million estimated by analysts polled by Thomson/First Call. The company also estimated it would post a net loss of $40 million to $45 million.

In addition, Sycamore said it would take $200 million to $210 million in charges for the quarter, half for excess inventories and purchase commitments, the other half for the workforce reductions, consolidation and the write down of assets.

Sycamore officials blamed the economy for the cuts and new guidance, saying the company would restructure for "an environment of low capital spending."

--Kevin Fitchard, staff writer