Reorganisation
Agere Systems announced plans to align its cost structure with current revenue expectations by reducing its workforce by 500 people across the business, including administrative functions, sales, marketing and product development.
The company expects to reduce its quarterly research and development (R&D) and selling, general and administrative (SG&A) expenses to the range of $170-175mn by Q3 of its FY2005, beginning in April. In the quarter ended June 30, the company had reported $195mn in these expenses.
In addition, Agere announced that it would cease operations in its wafer manufacturing facility in Orlando, Florida., by the end of December 2005, if a sale of the facility cannot be arranged by that time. In 2002, the company had announced plans to sell this facility as an ongoing operation, but has not yet found a suitable buyer. The facility currently employs 600 people.
