(Fremont, CA) Avanex on course, but layoffs on way (210 jobs)

[UpInArms]

http://www.oaklandtribune.com/Stories/0,1413,82~10834~2586218,00.html

Though Fremont's Avanex plans to lay off 210 employees in 2005, according to a document filed Monday with the Securities and Exchange Commission, the optical component provider is on a steady course, an analyst said.

"Overall, Avanex's new CEO is getting the ship on a course toward profitability, and streamlining the operation by eliminating positions is part of that," said Erik Zamkoff of New York's IRG Research.

Avanex's board of directors on Friday approved a workforce reduction plan that would terminate about 210 employees in 2005, according to an 8-K form the company filed with the SEC. The layoffs would reduce operating expenses and improve the company's cost structure, according to the SEC filing.

"The future looks bright for Avanex, but the two things they need to do are to cut costs in terms of personnel and solidify or consolidate their manufacturing," Zamkoff said. "They're making progress on both fronts and are going in the right direction."

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[sam sarrha]

1. This is called down sourcing.. they declare the wages and savings in

insurance costs as "PROFIT" making themselves look Profitable while eliminating their ability to produce a quality product.

I worked for Boeing's only Non Union Shop and they did the same thing and lost nearly all their contracts because of quality.. we got behind and had to work...12/7 for about 2 1/2 months. they told us if we missed a day or were late or left early we were fired. the women said they had to take and pick up their kids from school.. the Management said id they had to take their children to school and would be late next week to just hand in their tool boxes on the way out after work that day, it would save them a trip back after they were fired Monday morning. we were also told if we didn't get the backlog done by Xmas we would would also work Xmas and and Xmas day.

being the only non union shop we got paid 1/4 what the other shops did.. I was getting $8.24 a hour after 3 years and was a specialist. they lost their good workers to Austin where they paid well and didn't have a belligerent management style.

the government needs to stop that practice.. it is Fraud ! and destroying our country. it happens to thousands of workers every year.

they also need to quit requiring companies to produce 15% growth in profits yearly ..it cant be done and it is destroying the middle class.