Bookham announces further cutbacks
Bookham has adopted an additional cost-reduction plan to reduce its overhead structure by an additional $6 million to $8 million per quarter.
SAN JOSE, CA—Bookham has adopted an additional cost-reduction plan to reduce its overhead structure by an additional $6 million to $8 million per quarter. This plan is in addition to the ongoing cost reductions of $10 million to $12 million per quarter announced in May 2004. Bookham anticipates the combined plans to be completed before the end of 2005.
The plan includes workforce reductions, the closure of certain facilities including Bookham's former headquarters in Abingdon, England, and the consolidation of certain development and manufacturing programs. The restructuring charges associated with this additional reduction cost plan are expected to be $6 to 8 million, including $4 million to $5 million for employee severance and retention.
Since 2002, Bookham has acquired the optical components businesses from Nortel Networks and Marconi, as well as Ignis Optics, Cierra Photonics, New Focus, and Onetta. The company has manufacturing facilities in the UK, United States, Canada, China, and Switzerland; offices in the United States, UK, France, Italy, and China; and employs approximately 2000 people worldwide.
In May 2004, Bookham closed its GaAs fabrication operation in Caswell, England. At the same time, Bookham is reportedly accelerating the development of its packaging facility in Shenzhen, China, with the transfer of production to that plant expected to be completed by mid- to late 2005.