ALAMEDA, Calif. (AP) -- Telecommunications equipment maker UTStarcom Inc. said Thursday it will eliminate 2,300 positions worldwide, or more than 50 percent of its work force, by the end of the year as part of its effort to reduce costs.
UTStarcom says it is seeking to bring its operating expenses below $100 million -- which is more than 50 percent less than its current level of spending.
"These initiatives are aimed at returning UTStarcom to profitability as quickly as possible," said Peter Blackmore, UTStarcom's CEO and president, in a statement.
Last month the company reported first-quarter losses of $67.4 million, or 54 cents per share, reversing a year-earlier profit, as sales fell to $119 million from $586 million.
UTStarcom anticipates it will book second-quarter restructuring charges of $40 million to $45 million mainly for one-time severance benefits. The company expects the cash impact of these charges will be in the third and fourth quarters.
The company is also looking to outsource its manufacturing operations and to pare down spending on research and development on selected products.
Shares of UTStarcom fell 24 cents, or 11 percent, to $1.91 in after-hours trading, after adding 13 cents, or 6.4 percent, to close at $2.15.