Tellabs cuts 12% of work force

Tellabs yesterday announced plans to cut 1,000 jobs—12% of its work force—and close a plant in Ireland to offset lower revenues caused by the slump in telecom spending.

Tellabs will lay off 950 employees in addition to the 50 workers who accepted the company’s early-retirement package. The vendor will shift work from the Drogheda, Ireland, manufacturing plant to two of its other international locations and will scrap plans to open offices in Chelmsford, Mass.

“As customers continue to reduce capital spending, we have less work for employees and must take difficult steps to preserve Tellabs’ long-term health,” said Tellabs President and CEO Richard C. Notebaert in a prepared statement.

These measures are part of Tellabs’ goal to reduce operating expenses by 5% by the fourth quarter of 2001. The company expects to take a one-time restructuring charge of about $50 million in the third quarter.