Corning cuts expectations and workforce

Troubled fibre optics firm Corning has done little to alleviate the problem of a falling share price with news that it has axed 825 employees and lowered revenue expectations.

Shares in the beleaguered firm closed at $27.70 on the New York Stock Exchange on Friday - 8.43 per cent down and a long way short of the company's $113.29 52 week high. Corning blamed cuts at manufacturing facilities in Pennsylvania and New York on softening demand from the telecommunications industry, but said it expects its optical fibre business to remain strong in its first quarter. Last month Corning adjusted its previous guidance for revenue growth to 50 per cent - down from between 75 per cent to 90 per cent year-on-year growth. Corning rival JDS Uniphase announced 3,000 job cuts last Tuesday - 10 per cent of its staff.