Avaya to Cut 3,000 Jobs, Lowers Outlook

Avaya Inc., a maker of office phone equipment spun off from Lucent Technologies Inc., said it will eliminate at least 3,000 jobs, or 11% of its work force, and said second-half sales will fall.

Sales will decline 4% to 6% in its fiscal third quarter, which ends June 30, from a year ago, the company said. Per-share earnings, excluding one-time charges and costs, will double, spokeswoman Lynn Newman said. Fourth-quarter revenue will decline 4% to 8%, with profit climbing sixfold, she said.

Avaya, spun off from Lucent in September, is trimming costs to offset a slowdown in demand for its corporate phone and data networking gear.

Shares of the Basking Ridge, N.J.-based company fell 12 cents to close at $15 on the NYSE before the announcement. Avaya dropped to $13.85 in after-hours trading.