OCEANPORT, N.J., June 27 -- Tellium Inc. has announced restructuring that will result in approximately 200 job cuts by the end of the month.
The company also announced an option exchange program for its remaining employees. The option exchange and any write down of Tellium's non-cash charges related to deferred compensation will take place in the third quarter, the company said.
Tellium said the business restructure will result in a one-time restructuring charge of approximately $7 million to $10 million in the June quarter associated with the workforce reduction. It said it expects ongoing quarterly operating costs to be reduced by $5 million to $7 million as a result of the layoffs.
"In these turbulent times, we feel it is important to demonstrate to our shareholders and our business partners our commitment to manage our business for the long term - for stability, then growth and a return to profitably. Our actions today will significantly lower our operating costs, and provide a strong financial foundation upon which we can better serve our customers," said Harry Carr, Tellium's chairman and CEO of Tellium. "While these changes are difficult for the members of the Tellium family, we firmly believe they will enable us to manage our business during this unprecedented period of uncertainty and allow us to maintain our leadership position in the industry."