Tellabs Reports Fourth Quarter Revenue Losses and 530 Layoffs

Mobile Internet solutions company Tellabs released its fourth quarter financial results today, and the news isn't good. The company's fourth quarter revenue totaled $317 million, as opposed to $410 million in the same quarter of 2010. The company reported a net loss of $5 million, compared with a net loss of $11 million in the fourth quarter of 2010.

Along with the financial results came the news that the company will be restructuring. This will involve the  elimination of  about 530 jobs. The employees who are to be cut have already been notified, though the company did not indicate where these jobs are located. Tellabs employs about 3,250 people worldwide, and about half of those employees are based in Naperville, Illinois. The restructuring is expected to be completed by the first quarter of 2013, according to the Chicago Tribune.

“In a climate of economic uncertainty, Tellabs needs to align expenses with revenue,” said Rob Pullen, president and CEO of Tellabs. “Unfortunately, our restructuring will affect about 530 people. We will reduce expense and stop new development work on the Tellabs SmartCore 9100 LTE product, while continuing to support Tellabs SmartCore 9100 WiMax customers.”

Tellabs has indicated that it plans to close four of its nine research and development facilities: one each in California, British Columbia, Pakistan and India. This is not Tellabs' first downsizing as of late: in July 2011, the company cut 330 jobs, also part of a restructuring program.

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Tracey Schelmetic is a contributing editor for MobilityTechzone. To read more of Tracey's articles, please visit her columnist page.

Edited by Jennifer Russell