Sonus Networks cuts more jobs

Sonus Networks announced it is "restructuring" again, this time cutting 60 people from its worldwide workforce for its third round of cuts in as many months. The company says the latest cuts equal out to 6 percent of employees.

Sonus expects to take a $1.3 million to $1.6 million pre-tax hit for severance and related costs in the first quarter of FY 2009 for the action, but expects to save anywhere from $5.8 million to $6.3 million in "Compensation-related" (i.e. salaries and overhead) savings as a result of the move.

Adding it all up, Sonus expects to spend anywhere from $2.1 million to $2.4 million before taxes on job cuts during the first quarter of 2009 for a resulting savings of anywhere from $10.3 million to $11.3 million.

In December, Sonus announced it was cutting 50 jobs that would eliminate 5 percent of its total workforce.  It added another 40 jobs and 4 percent of employees worldwide to that total Jan. 13.

Net-net, this translates to Sonus cutting 160 jobs from its total workforce in three months, but a company spokesperson said that as they reduce employees worldwide from their total, they're adding them on in other parts of the globe. 

This reporter presumes that Sonus seems to have a hiring cap of around 1,000 employees total rather than actually reducing its total workforce, because a cumulative cut of 160 jobs off of a baseline of 1,000 employees back in December would work out to a total workforce reduction of 16 percent.

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- Sonus announces the bad news.

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