GERMANTOWN, Md., Sept. 5 -- Acterna has announced it will eliminate approximately 500 positions worldwide to reduce operating costs, and it will consolidate manufacturing operations and expand its work with contract manufacturers. A restructuring charge of approximately $10 million will be taken in the current fiscal year, the company said.
"We have seen a new round of capital spending reductions indicating that the global telecommunications industry is still struggling to find its footing," said John Peeler, president of Acterna. "These are very difficult decisions, but are necessary in order to align Acterna's cost structure with the projected growth of the industry."
In August, Acterna closed cash tender offers for $150 million of its outstanding 9 3/4 percent bonds and sold its Airshow business unit to Rockwell Collins for $160 million, which reduced its debt by more than $230 million and its annual interest expense by approximately $17 million, the company said.
For more information, visit: www.acterna.com