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Avaya to cut 3,000 jobs
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June 12, 2001: 5:19 p.m. ET
Former Lucent unit warns, to cut 3,000 jobs
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NEW YORK (CNNfn) - Avaya Inc., the former unit of Lucent Technologies, warned Tuesday that fiscal third-quarter revenues will drop and that the provider of communication software will cut 3,000 jobs, or 11 percent of its workforce.
Basking Ridge, N.J.-based Avaya (AV: down $0.12 to $15.00, Research, Estimates) expects revenue to drop four to six percent in the third quarter ended June 30 and anticipates revenue to fall four to eight percent in the fourth quarter.
Avaya expects third quarter earnings per share to nearly double compared to the same time period in 2000 and jump six-fold in the fourth quarter.
The 3,000 jobs will be eliminated through a series of involuntary and voluntary separations, including early retirement packages targeting U.S. management employees, the company said in a release.
Avaya, the former Lucent (LU: down $0.10 to $7.94, Research, Estimates) unit that went public last year, plans to complete its restructuring by the end of fiscal 2002 and plans to improve net income from ongoing operations by 90 to 100 percent this year. The company has saved $100 million from the restructuring and anticipates saving another $50 million in third quarter and $80 million in fourth quarter.
The steps will help Avaya meet its previous 2002 EPS target of 35 to 45 percent growth even with flat revenue.
Avaya plans to announce third fiscal quarter results on July 26. 
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