Corvis to cut 15% of staff

Provider of optical network services and products Corvis said it would cut 250 people or 15% of its staff to cut costs amid the...

Provider of optical network services and products Corvis said it would cut 250 people or 15% of its staff to cut costs amid the turbulent US business conditions which have affected its bottom line.

The company will provide a severance package to employees who voluntarily leave, it said in a statement. If not enough employees voluntarily decide to resign, the company will have to re-evaluate and determine how to appropriately cut its costs, a Corvis spokeswoman said.

Corvis provides both optical hardware, such as switches and optical amplifiers, and network management software to build optical networks. The company has announced three customers: Broadwing, Williams Communications Group and Qwest Communications International.

Corvis is assisting Broadwing with its roll out of its all-optical network in the US. Williams Communications has a $300m (£211.6m) agreement with Corvis to supply Williams optical gear, such as optical virtual private networks, wavelength leasing and wavelength protection and restoration. Qwest, meanwhile, has plans to build an all-optical network in the US with Corvis, the companies said in a statement in late April.

During its first quarter for 2001, ending 31 March, Corvis said it had revenue of $84.1m. The company had a reported net loss of $100.8m loss or $0.29 a share loss for the quarter compared to a reported net loss of $26.8m or $0.65 a share for the same time last year.

Corvis (CORV) shares closed down $0.36, or 4.85%, to end Monday at $7.06 a share.

Visit Corvis at http://www.corvis.com/ .

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