Lucent spinoff cuts 4,000 more jobs (thestar.com, today)

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Jun. 29, 2001. 09:41 AM

ALLENTOWN, Pa. (AP) - Agere Systems,
the semiconductor business recently spun off
from Lucent Technologies, said today it will
slash 4,000 more jobs to cope with a
downturn in the communications market.

The move comes on top of the 2,000 jobs
the company said in April it would eliminate.
After the job cuts are complete, the
company's total workforce will be about
12,500 employees.

expects to take a charge of up to $900 million US to cover costs of the
restructuring, with $725 million of it taken in this quarter.

As part of its restructuring, the company is looking for a buyer for its chip
fabrication plant in Madrid, where it expects to discontinue operations by
the end of the year. It is also reviewing its manufacturing capacity at its
facilities in Orlando, Fla., and Allentown, Breinigsville and Reading, Pa.

In addition, Agere will consolidate several satellite manufacturing sites as
well as leased corporate offices.

Agere also announced that its revenues in the quarter would be about
$920 million, which is below the $950 million that the company had
expected.

''We built our business to serve a growing market, which is instead
deteriorating,'' said John Dickson, president and CEO of the Allentown,
Pa.-based company.

Agere is a leading producer of semiconductors and optical components for
computer and phone networks as well as other communications
equipment.
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