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Sonus cuts staff

By Matt Berger
IDG News Service, 08/08/02

Network equipment maker Sonus Networks Thursday announced it would cut 85 jobs from its worldwide work force as it weathers the downturn in the telecommunications industry.

The Westford, Massachusetts, manufacturer is reducing its 492-person staff by 17%, the company said in a statement. The layoffs will result in a charge of approximately $3 million against the company's third-quarter 2002 earnings, due to costs associated with severance packages for laid-off employees and for excess facilities, it said.

"We are making these adjustments as part of our commitment to manage our business with the precision that these times in the telecommunications industry demands," said Hassan Ahmed, president and CEO of Sonus, during a conference call Thursday afternoon with analysts and investors. "These changes will also accelerate a return to profitability."

The layoffs are expected to save Sonus $2 million per quarter. The reductions are being completed this month and will affect employees across its business divisions, said Steve Nill, Sonus' chief financial officer, in the conference call.

The IDG News Service is a Network World affiliate.

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