Comverse Technologies (Nasdaq:CMVT) (CMVT) chief executive Zeev Bergman sent an email to employees today, warning of more impending layoffs.
His email lacked two essentials: the number of workers facing dismissal, and the date of their termination.
Robertson Stephens estimates that Comverse is likely to terminate about 750 jobs, saving it about $70 million in 2002. Oscar Gruss senior analyst Rami Rosen estimates that 1,000 jobs will be cut, a proportion commensurate with the company's drop in revenues.
The layoffs are part of a corporate reorganization, encompassing structural changes in all divisions. In April this year Comverse laid off 371 people.
In his missive today, Bergman assured employees that Comverse would strive to assist fired staffers.
In the next few days the company will begin the implementation of a new work plan at the mid-management level, which will determine who goes and who stays. The mobile Internet division is likely to suffer the most.
On October 24 the company, which makes communications systems and software for phone companies, released a grave warning for the third quarter, estimating revenues of $295 million, 10.6% below earlier guidance. It also forecast earnings per share of 11 cents, down from an earlier forecast of 20 cents EPS.
Comverse, based in Woodbury, New York and Israel, will be releasing its quarterly results on December 10.