Sonus Networks to Cut Another 4% of Its Workforce

NEW YORK -- Shares of Sonus Networks (SONS Quote), which makes Internet network hardware and software, declined on Wednesday after the company said it would cut an additional 40 jobs, or about 4 percent of its work force.

Sonus shares fell 6 cents, or 3.9 percent, to $1.48 in morning trading, as the broader market also sank on dismal retail sales data and worries about the banking industry. The stock has traded between $1.14 and $4.78 during the past 52 weeks.

Late Tuesday, the Westford, Mass.-based company said it expects to record about $750,000 to $850,000 in restructuring charges related to the job cuts. The pretax charges, which cover severance and other related costs, will be booked in the first quarter of fiscal 2009.

Sonus expects the action to generate about $4.5 million to $5 million in annual compensation-related cash savings.

"We continue with our actions to ensure the business is the right size and aligned with the company's strategic direction," said Chief Executive Richard Nottenburg in a statement.

Sonus previously cut 50 jobs in December and said the company may take additional action in the future.

The company expects to complete the job cuts during the first quarter. Sonus noted that it is continuing to hire in some regions to support its future business plans.