Harmonic to Cut 10% of Staff in Bid to Cut Costs

Harmonic(HLIT Quote - Cramer on HLIT - Stock Picks) said this morning it will reduce its workforce by roughly 10%, or 100 employees, as it tries to bring costs in line with revenue.

The job cuts will result in a charge of $800,000 in the first quarter of 2001. Harmonic, which is based in Sunnyvale, Calif., makes digital and fiber-optic systems for delivering video, voice and data services over communications networks.

Harmonic attributed the need to lower expenses to the reduction in capital spending by some of the company's customers.

"We have been facing challenging market conditions and are taking the necessary steps to reduce expenses without damaging our long-term competitiveness," the company said in a press release.

Shares of Harmonic dropped 59 cents, or 5.9%, to $9.63 in recent Nasdaq trading.

In January, Harmonic reported a fourth-quarter loss that missed Wall Street's expectations by 4 cents a share. Sales for the quarter fell to $52 million, down from $63.3 million in the same quarter one year ago.