Tellabs Outsources North American Manufacturing

Tellabs announced plans to outsource manufacturing of its North American products to Sanmina-SCI, resulting in the layoff of 325 employees. The company will close its manufacturing facility in Bolingbrook, Illinois. Tellabs said it is making the change to benefit from lower manufacturing costs and to free capital now tied up in equipment, inventory and facilities. Beginning in Q3, Tellabs will record an estimated $90 million to $110 million in charges connected with the outsourcing move.
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