Layoffs at Corning

As part of a new round of cost-cutting measures, optical fibre, cable and photonics manufacturer Corning is to close its optical fibre manufacturing facility in Victoria, Australia by early 2003. The company also proposes to close its Neustadt bei Coburg, Germany optical fibre plant in the same timeframe. It will also permanently close its photonic […]

As part of a new round of cost-cutting measures, optical fibre, cable and photonics manufacturer Corning is to close its optical fibre manufacturing facility in Victoria, Australia by early 2003.

The company also proposes to close its Neustadt bei Coburg, Germany optical fibre plant in the same timeframe.

It will also permanently close its photonic technologies thin film manufacturing facility in Marlborough, MA by the end of 2002.

Corning will also mothball its optical fibre manufacturing facility in Concord, NC, and transfer certain capabilities from the plant to its Wilmington, NC facility. Corning says that the Concord facility can be returned to productive capacity within six to nine months of a decision to reopen – should the market pick up.

Corning said the ‘restructuring actions’ will result in a reduction of approximately 2,200 employees.

‘The challenge confronting the telecommunications industry is the most serious we have faced,’ said James B. Flaws, vice chairman and chief financial officer. ‘Telecom carriers continue to indicate that they will further reduce investments in 2003. As a result, we are taking decisive action to re-size our businesses to reflect today’s economic realities. These actions will contribute to our plan to achieve profitability in 2003. We are also evaluating other restructuring actions and we may announce further charges later in the current quarter.’

Corning’s third-quarter sales were $837 million. The company recorded a net loss to common shareholders of $260 million, or $0.25 per share.

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