After hinting in its recent quarterly earnings call that more restructuring
was in the works, cable-gear vendor Scientific-Atlanta Inc. followed through
with an announcement that it will be handing out 400 pink slips.
The layoffs are aimed at cutting costs by about $40 million annually.
Company officials blamed the cuts on drastic cutbacks in capital expenditures
among MSO clients.
S-A will make most of the cuts -- equaling 6 percent of its work force --
immediately. The remainder will be made in the next few months. Eliminations
will be made across the company's divisions.
The company will take a $15 million one-time, pretax charge over the next two
quarters, with the bulk of that charge taken in the current quarter. That will
in part pay for severance packages and outplacement services.