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Optical switch maker Trellis Photonics is closing its branch in Yokneam and firing 35 people, of whom ten work at the company's Jerusalem headquarters.

The company will be left with a staff of 70 after its management decided to consolidate all activity in the Jerusalem facility.

Trellis Photonics said it had decided to restructure because of the adverse developments in the global communications market. It began by cutting 50 jobs in Israel and 10 from its branches in the United States. One casualty was Timothy Cahall, who had led Trellis' offices in Baltimore, Maryland.

At the time the company froze plans to establish a manufacturing center in Maryland. Now it has elected against building a manufacturing center at the Lod industrial zone. Investment in the two projects was assessed at $25 million.

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The company predicts it will begin marketing in mid-2002, instead of 2001 as originally planned. It also claims to have enough cash to support operations, and that its long-term backers will continue to support it.

In August 2000 Trellis secured $25 million at a company value of NIS 150 million. To date, it has raised $37 million from Pitango Venture Capital, Yozma venture capital fund, Eucalyptus Ventures, Chase Equity Associates, the Carlye group, and the Canadian venture capital fund Skypoint, among others.