JDS Uniphase (Nasdaq: JDSU) fellUS$2.81 to $29.81 in morning trading Tuesday after announcing 3,000 layoffs.
JDS, an Ottawa, Ontario-based maker of fiber-optic components, said most ofthe cuts will cover manufacturing jobs in San Jose, California and Nepean,Ontario.
The reductions “reflect opportunities for realignment and improvedefficiency as a result of the current business environment,” the companysaid.
JDS said it still intends to hire people for positions in “high-growthproduct areas,” and to “aggressively support” new product development.
JDS recently lowered its estimates for sales and earnings for the quarterending March 31st. Sales for the quarter will be “at or slightly above $1billion,” with earnings before extraordinary items of 17 cents per share, below analyst expectations for per-share earnings of 21 cents.
For the year as awhole, the company projected sales of $3.9 billion and earnings of 74 centsper share.
“This guidance reflects continued uncertainty in carrier capital spendingprospects and customer inventory adjustments, as well as a lower level ofnear-term sales visibility than the company has experienced in recent periods,” JDS Uniphase said.
JDS recently completed the acquisition of rival component maker SDL andsold its Zurich subsidiary to Nortel Networks.
“We are delighted to have thestrong team from SDL join JDS Uniphase, and now with the merger complete,our challenge now is threefold: to collaborate, integrate and innovate, allwith the highest degree of agility,” said JDS co-chairman and chiefexecutive officer Jozef Straus.
JDS shares are down from a 52-week high of $153, hurt by a drop in demand fortechnology stocks and by news that its larger customers, such as Cisco (Nasdaq: CSCO),are seeing declining business.