Comverse Technologies (Nasdaq:CMVT) (CMVT) is expected to begin the process of cutting 1,200 within days. The worst-hit unit is likely to be Mobile Internet.
On Monday Comverse will be announcing its reorganization plan for each of its divisions. At the moment the company employs about 5,500 people.
In April the company fired 371 people, of whom 159 worked in the United States.
Comverse would not comment on the extent of the intended job cuts. It said that since publishing a results warning on October 24, the executive has been working hard on finalizing the company's working plan and budget for 2002.
On October 24 Comverse pre-announced estimated third-quarter revenues of $295 million, down 10.6% from its previous estimate of $330 million. It also warned that expected earnings might be 11 cents per share, against an earlier estimate of 20 cents.
The next day Robertson Stephens predicted steep cutbacks at Comverse, including 500 job cuts. Oscar Gruss analyst Rami Rosen said the company would more likely reduce its workforce by 1,000 people, commensurate with its 20% slide in revenues.