Tellabs to cut staff by 530

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Third-quarter earnings at Tellabs are up about a percent higher compared to third-quarter earnings a year ago. | Submitted photo

Updated: March 2, 2012 8:11AM

A restructuring by Naperville-based Tellabs means that 530 employees will be let go, including some in Naperville.

The company held a meeting with employees Monday night about the situation.

On Tuesday, Tellabs indicated total revenue fell to $317 million in the fourth quarter of last year, compared to $410 million during the same quarter the year before.

Tellabs Vice President of Communications George Stenitzer told The Sun Tuesday that Tellabs has nine facilities it operates around the world.

“We are closing our smaller facilities in California, Canada, India and Pakistan, and will still operate our larger R&D facilities in another California location, Finland, Dallas, Shanghai and here in Naperville,” Stenitzer said. “We feel it’s easier to maintain our larger facilities and eliminate our smaller ones in an effort to align our expenses with our revenue.”

Stenitzer said that company CEO Rob Pullen met with employees Monday night to announce the layoffs here locally and that some employees were served with notices of termination Tuesday. Stenitzer said no hard numbers of those being let go here in Naperville are available right now.

“I can tell you there are 900 people employed here and that the cuts are being across the board at all facilities,” he said. “People are being notified today (Tuesday) and are receiving their severance packages, based on the jobs they had here.”

Stenitzer said one of the critical issues that impacted the company was “a North American client who spent a lot less with the company in 2011.”

“Technology goes in cycles, and while we did very well in 2010, we didn’t do as well in 2011,” Stenitzer said. “We have a North American customer that spent less last year and it had an effect. This is a new year, and hopefully 2012 is going to be more like other years where we’ve been more successful.”

In a statement issued by the company, Pullen said the uncertain economic climate meant that changes had to be made.

“In a climate of economic uncertainty, Tellabs needs to align expenses with revenue,” he said. “Unfortunately, our restructuring will affect about 530 people. We will reduce expenses and stop new development work on the Tellabs SmartCore 9100 LTE product, while continuing to support Tellabs SmartCore® 9100 WiMax customers.”

Tellabs’ headquarters is at 1415 W. Diehl Road in Naperville.