11 September 2003 Naperville, IL Lightwave--Taking another step on its path to profitable growth, optical systems provider Tellabs announced it plans to reduce its workforce by October 3. Starting this week, the company is offering its U.S.-based employees the opportunity to express a preference to leave the company. Employees who volunteer for the preference procedure and are approved will receive severance benefits, which include severance pay, benefits, and outplacement assistance. Tellabs offered the same voluntary preference procedure to its U.S.-based employees in April.
"In an effort to help make the coming workforce reduction a little bit easier, we're providing our employees the opportunity to voice a preference if they would like to voluntarily end their employment," said Michael J. Birck, chairman and chief executive officer. "This is a painful but necessary step for Tellabs as we progress along the path to profitable growth."
Tellabs remains on track to reduce its quarterly operating expenses to $125 million by the fourth quarter of 2003, excluding its Vivace Networks
acquisition and charges.