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NAPERVILLE, Ill. -(Dow Jones)- Tellabs Inc. (TLAB) will outsource manufacturing of its North American products to Sanmina-SCI Corp. (SANM), resulting in 325 job cuts at Tellabs.
The company plans to begin recording charges of about $90 million to $110 million in connection with the outsourcing in the third quarter.
In a press release Friday, Tellabs said the transition will begin immediately, and it expects manufacturing operations at its Bolingbrook, Ill. faciltiy to cease by year-end.
Tellabs will move the remaining employees from the Bolingbrook facility to its Naperville headquarters, and sell the Bolingbrook building.
On July 22, Tellabs Chief Executive Michael J. said he "was very positive regarding Tellabs' North American operations."
In a separate release, Sanmina-SCI said it will fold all printed circuit-board assembly and repair services for Tellabs North American products into its facilities.
Tellabs said it now plans to focus on "taking care of customers and developing the products that telecom service providers need," and it expects slight benefits from lower costs this year.
Electronics-contract manufacturer Sanmina-SCI said it has worked with Tellabs for 10 years, providing the original equipment manufacturer with circuit boards, backplanes and enclosures for their telephony-distribution, digital cross connect, metro-optical and transport-switching product lines.
Company Web sites:
http://www.tellabs.com and
http://www.sanmina-sci.com Okay, who wants to start the list? so far we no longer buy HP, Telabs, etc. I think we need a list, a website, etc.
I had an interview with Tellabs-Bolingbrook in early 2002. When I later inquired about my chances, I was told that they "decided to go in a different direction." In retrospect, I guess it's a good thing I didn't get the job.
If is not clear if this is a move offshore or just outsourcing to another US based plant.
Maybe if I stop by McDs tonight for a Big Mac they will say they outsourced hamburgers.