Corning to axe 1,000 jobs

Demand for optical fibre's slow these days...

Demand for optical fibre's slow these days...

Optical fibre maker Corning is to axe 1,000 jobs by the end of the year, blaming the downturn in the telecommunications sector. The announcement brings Corning's total job cuts for the year to 8,000 from a 41,000 workforce at the beginning of the year. Alan Eusden, senior vice president of Corning Optical Fibre, said the reduction of staffing levels was a necessary measure "to control operating costs". James B Flaws, Corning's chief financial officer, said it now expects overall market growth to be below the previously forecasted 15 per cent. Flaws said the job cuts are to counter slowing demand for optical fibre and cable in the North American and European markets. He added that Corning now expects its unit shipments in the second half of the year to reach the same level as in 2000. However, he said the company remains confident for the future demand for bandwidth and, "this demand will fuel growth in our telecommunications business in the future". When the markets closed yesterday evening, Corning's share price had fallen 5.13 per cent to $14.60 from $15.39.