Wednesday, August 12, 2009

Sonus Announces 10% Workforce Reduction

Sonus Networks announced plans to cut its workforce by approximately 93 people, or 10% of employees worldwide. The company expects to incur restructuring charges for severance and related costs of approximately $1.4 million to $1.9 million on a pre-tax basis in the third quarter of fiscal 2009 in connection with this action and anticipates annual compensation-related cash savings of approximately $9.4 million to $10.3 million as a result of this restructuring initiative.

"This is the final phase of the restructuring initiative we began at the end of last year with the goal of re-aligning our business to market needs and opportunities," commented Richard Nottenburg, president and chief executive officer of Sonus Networks.