Agere Systems to cut almost 25% of staff, take $900 million charge
Article Abstract:
Agere Systems plans to cut 16,500 workers (4,000 to be laid off) and take a third quarter $900 million charge as a result of a drooping telecommunications' equipment sector, with less demand for Agere's optoelectronics and micro-semiconductors. Revenue for the quarter was approximately $920 million, $30 million less than expected. $725 million part of the charge will be for restructing the company. Lucent is planning to spin off its 58% of Agere in shares by the end of September. Some analysts thought the news would be worse as Agere's shares went up 25% after the news.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 2001
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New business won't revive telecom group; equipment makers to sell more in niche categories, but spending still flags
Article Abstract:
The telecommunications equipment industry, in a slump even before the terrorist attacks on the World Trade Center and the Pentagon, is not expected to gain much ground as companies hurt in the attacks try to regroup and purchase new equipment. The industry will be hit by the reduced-budget plans of US telephone companies. Corporate spending on telecommunication systems is the only hope for the telecom equipment outlook as companies look to upgrading and improving systems after the shock of the tragedy.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 2001
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Motorola to slash staff, take big charge; radical move to cut 10% of work force is meant to end profit erosion
Article Abstract:
Motorola introduced plans to lay off a company record 10% of its work force, or 15,000 workers, in addition to taking a $1.95 billion charge to underwrite the job reductions and consolidate its semiconductor and paging operations. The once dominant wireless-communications company, which has been reeling since 1995, said it might report a 2nd qtr 1998 operating loss excluding the charge. Motorola said weakening demand and international pricing pressure, particularly in chips and in Asia, underpin the problems. Other big technology companies are presently encountering financial difficulties amid price reductions in PCs but remain profitable. The rise of digital communications networks is powering Motorola rivals such as Lucent Technologies, Telefon L.M. Ericsson and Northern Telecom. Motorola's last operating loss and layoffs came in the mid-1980s and mid-1970s respectively.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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