Sycamore Networks To Cut 30 Percent Of Work Force

CHELMSFORD, Mass. (AP) — Sycamore Networks Inc. said Wednesday it is cutting about 30 percent of its worldwide work force because of the economic turmoil and reduced capital spending in the telecommunications market.

The telecommunications equipment maker did not specify how many jobs will be affected and a representative could not immediately be reached for comment late Wednesday afternoon.

According to Capital IQ, the company has 492 employees.

Sycamore expects annual cost savings of $17 million to $18 million once the cuts are completed over the next several quarters. Sycamore also expects to take restructuring charges of $4 million to $5 million over the next several quarters.

The cuts, the company said, will "affect all functional organizations and multiple geographic locations."

Shares closed up 2 cents at $2.90.