Global Crossing, Vitesse Semiconductor Cut Staffs

Communications Today, Nov 15, 2001

High-speed communications services company Global Crossing [GX] posted a third-quarter loss over five times wider than a year earlier and said it would cut another 1,200 jobs (close to 10 percent of staff) in addition to a previously announced reduction of 2,000 people.

Communications chipmaker Vitesse Semiconductor [VTSS] will cut 130 jobs, or 10 percent of its work force

Camarillo, Calif.-based Vitesse concluded the job cuts were necessary to lower its operating expenses so that it could be profitable at lower revenue levels.

Vitesse, whose chips are used in networking and optical communications equipment, also said that the guidance it issued earlier is unchanged. It still expects to report a fiscal first-quarter loss of 11 cents to 14 cents a share on sales of $36 million to $40 million.

Global Crossing's third-quarter net loss including discontinued operations increased to $3.4 billion, or $3.84 per share, compared with a loss of $602.4 million, or 69 cents a share a year ago. Revenue rose to $792.9 million from $778.1 million in the year-earlier period. >TK