Tellabs
has followed Nokia Siemens Networks by announcing a restructuring of the
company activities and a focus on core product lines. In the wake of sharply
falling revenues in the fourth quarter of 2011, the company has suspended work on one element of its LTE product line
and will make 530 employees — out of about 3,000 — redundant.
The
revenue in the fourth quarter was $317 million, a decline of 22% on the $410
million sales it recorded in the fourth quarter of 2010. The company recorded a $5 million loss on the quarter.
Rob Pullen,
the CEO and president, said: “In a climate of economic uncertainty, Tellabs
needs to align expenses with revenue. Unfortunately, our restructuring will
affect about 530 people.”
The
company will “stop new development work on the Tellabs SmartCore 9100 LTE
product, while continuing to support Tellabs SmartCore 9100 WiMax customers”,
Pullen added.
However,
in a clarification given to Global Telecoms Business, CTO Vikram Saksena said
that the company was continuing most of its LTE-based development.
“Tellabs
hauls traffic in LTE networks and is working on multiple LTE trials today,”
said Saksena. “Our future Tellabs 9200 will add intelligence to create smart
mobile backhaul networks. Our new Tellabs 8609 and 8611 offer a high-density,
low-cost ethernet product to lower the cost per bit in mobile backhaul.”
Pullen
said that work will continue on its mobile backhaul and packet optical products
and its professional services. Restructuring will cost about $107 million,
mainly in the first quarter of 2012, the company said.
“About
150 mobile operators around the world have chosen Tellabs mobile backhaul
solutions,” said Saksena.
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