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Ciena to Close New Jersey Plant

Photonics.com
Mar 2006
LINTHICUM, Md., March 21, 2006 -- Telecom equipment supplier Ciena Corp. today announced it plans to close its Shrewsbury, N.J., facility no later than April 29, resulting in 62 layoffs. The facility currently houses 114 employees.

Ciena said it expects to offer relocation to 27 employees, the majority of them engineers. The planned action is expected to have no effect on current product development efforts.

Sales and support activities now conducted out of the facility will be moved to alternate remote locations, it said, and operational responsibilities based out of New Jersey will be moved to the company's headquarters in Linthicum, Md.
Ciena also has development facilities in Acton, Mass.; Alpharetta, Ga.; and Kanata, Ontario. It recently launched a development center in Gurgaon, India. At the end of its first fiscal quarter ending Jan. 31, Ciena employed 1442 worldwide.

Gary Smith, Ciena's president and CEO, said, "For more than a year now, we have been moving away from product-based or location-specific R&D to a model of 'core competency-based' R&D that enables us to leverage our engineering resources across a wider range of product and solutions sets, independent of geographic location. Closing a facility is a difficult decision that affects employees, their families and the surrounding community, but the cost savings that will result make it a necessary step in Ciena's process toward profitability and earnings growth."

Ciena said it estimates that the actions announced today will generate between $7 to $8 million in annualized cost savings, including approximately $6 to $7 million at the ongoing operating expense level, prior to restructuring-related or other nonoperating charges.

For more information, visit: www.ciena.com




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