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17 Jun 2002
As the global downturn continues optical telecoms companies take cost-cutting actions.
North American optical telecoms component manufacturer, JDS Uniphase, has announced massive losses of USD 45 billion for this year and plans to cut 7000 jobs. JDS Uniphase's job losses now total 16,000.
"Fiscal year 2001 began as a rapid expansion for JDS Uniphase but concluded with a severe industry downturn," said JDS Uniphase's chief executive Jozef Straus. "We are taking decisive steps to modify our cost structure and reduce our expenditures."
Another US telecoms equipment maker taking decisive action is Lucent Technologies. The company's latest announcement to slash up to 20,000 more jobs follows third-quarter losses of USD 3.25 billion. Revenues are down 21% from the third quarter of last year.
Lucent Technologies spin-off Agere, US, has announced third-quarter net losses of USD 1.1 billion. Still intending to invest in optoelectronics, however, the company's chief executive John Dickson is confident that Agere will "emerge stronger from the downturn".
In Europe, France-based Alcatel has delivered mixed news. While revealing total operating profits of USD 120 million for its second quarter, the telecoms-equipment maker has also made plans to cut 20,000 jobs by the end of the year.
"In the midst of a severe telecom industry re-set that is leaving no participant unscathed, we have maintained revenue growth," said Serge Tchuruk, chief executive of Alcatel. "[However] considerable streamlining is under way to realign internal costs to the current business slowdown."
The company will continue to outsource manufacturing capacity and believes that the full impact of these cost savings will be realized by the end of this year. But to finish on a high note, the optics arm of Alcatel was the most profitable, making USD 182 million.
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