Avaya Will Reduce Work Force by 12%
Bloomberg News
Avaya Inc., the biggest U.S. maker of office-telephone equipment, will eliminate 2,500 jobs, or about 12% of its work force, amid a slump in demand.
The company will set aside $150 million in its fiscal fourth quarter for cutting jobs, closing offices and terminating leases, as well as the declining value of assets, it said in a statement.
Since Avaya was spun off from Lucent Technologies Inc. in October 2000, the company has cut about 7,200 jobs, or 24% of its work force. The latest round of job cuts brings the company’s payroll to 19,100.
Shares of the Basking Ridge, N.J.-company fell 9 cents to $1.60 on Nasdaq.
