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Technology Stocks : SDLI - JDSU transition -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (1777)	6/28/2001 8:23:32 AM
From: John Carragher	Respond to of 3294

June 28, 2001 JDS Uniphase Sees More Layoffs Ahead as Part of Cost Reductions By JOHNATHAN BURNS Dow Jones Newswires Fiber-optics component maker JDS Uniphase Corp. expects to cut more jobs than the previously announced 5,000, in a continuing effort to reduce costs amid a downturn in telecommunications-equipment spending. Lori Goulet, a company spokeswoman, said JDS Uniphase is involved in an "ongoing process" of reviewing its cost structure and identifying expense reductions. But she said the company would make no formal announcements until it releases fiscal fourth-quarter earnings on July 26. In April, JDS Uniphase said it would lay off 5,000 employees, or 20% of its work force. So far, 2,300 workers have been laid off at the company's Ottawa facilities. Of the 2,700 additional global layoffs planned by the company, Ms. Goulet didn't say how many employees outside Ottawa have already been let go. She said the company's separate operating divisions were in the midst of a business review, and any additional job cuts would be determined after that process is complete. "There are likely to be more" job cuts, Ms. Goulet said. She noted that the company alluded to the possibility of more job cuts on June 14, when JDS Uniphase lowered sales estimates for the current quarter ending Saturday to $600 million from $700 million. The company also said it expected sales of $450 million for the first quarter of fiscal 2002, which was about $113 million below what most analysts were expecting. In its June warning, JDS Uniphase officials said: "The company is carefully reviewing its expense structure with the preparation of its fiscal 2002 operating plan to determine the changes, including additional charges under the company's previously announced global-realignment plan, required to respond to this revised sales forecast." Like many of its peers, JDS Uniphase spent much of the past two years increasing the size of its work force. Building optical components is labor-intensive, with limited automation in the industry relative to other high-tech fields. A quick drop-off in telecom-equipment spending by large carriers, especially in North America, caught most of the fiber-optics sector off guard. JDS Uniphase officials have repeatedly said their ability to forecast spending is poor. Shares of JDS Uniphase were up 10 cents at $12.13 in 4 p.m. trading Wednesday on the Nasdaq Stock Market, well off their 52-week high of $140.50. Write to Johnathan Burns at johnathan.burns@dowjones.com