CommScope Inc. said Monday it has eliminated 500 permanent positions -- equal
to about 13 percent of its entire workforce -- and has cut its temporary
staffers in the wake of a spending slowdown that has impacted technology
companies nationwide.
CommScope's permanent workforce numbered 4,000 as of Dec. 31, 2000, the
company said.
Monday marked the second time this year the hybrid-fiber coax gear
manufacturer has instituted staff reductions to balance its work force with
business levels. Earlier, the company had initiated an eight-day 'rolling
layoff' - or unpaid time off - that affected 5 to 20 percent of CommScope's
staff at any one time.
'Unfortunately, permanent work force reductions were a necessary next step
for us to prudently manage our business and to remain competitive in this
challenging economic environment,' said CommScope chairman and CEO Frank Drendel
in a press release.
Despite the 2001 market slowdown, Drendel noted opportunities in the
long-term remain, based on his belief that 'much more work needs to be done
before the majority of the world's countries have experienced the power of
broadband wired and wireless networks.'
CommScope said the layoffs will result in a first-quarter charge of up to
$0.02 per diluted share. The company plans to release first quarter results on
April 24.
CommScope shares dropped 3.7 percent to $16.05 in early trading Monday.
