11 June 2002 -- Corning Inc is to cut more than 600 jobs as it downsizes its Corning Cable Systems operations in North and South America and restructures its Optical Assembly Plant in Hickory, NC, USA. Including the previously announced closure of a facility in Puerto Rico, Corning Cable Systems will have shed 10% of its staff in the Americas.
The announcement is part of April's plan to cut about 4,000 staff (12.5% of its workforce) and take steps including consolidation of organisations, plant closures, elimination of some R&D operations, and potential sale of some smaller businesses to achieve its goal of returning to profitability next year. Corning cut 12,000 jobs last year.
Corning Cable Systems has also begun proposing a reorganisation of its European facilities with staff representatives. Final decisions will be announced in the next several weeks.
However, "Corning Cable Systems remains a strategically important element of our global telecommunications strategy," says vice chairman and chief financial officer James B Flaws. "The actions we are taking are designed to optimise our effectiveness in delivering new products and materials."
Corning will announce further restructuring and staff reductions during Q2 and Q3/2002. Previously, it said that it expected restructuring and impairment charges of USD600m pretax over Q2 and Q3.