July 2, 2001 — ALLENTOWN, PA — Agere Semiconductor late last week announced that it will cut 4,000 more jobs as it continues to struggle with a market downturn.

The semiconductor company cut about 2,000 jobs in April, including nearly 400 at Orlando-based Cirent Semiconductor, which is owned by Agere. Most of the latest cuts are expected to occur in Spain and Pennsylvania, according to a company spokesperson. The layoffs will bring Agere’s total workforce down to about 12,500 employees worldwide.

“We built our business to serve a growing market, which is instead deteriorating,” said John Dickson, president and CEO of Agere Systems. “We’re continuing to take significant measures to adapt our business in the face of changing conditions.”

Agere expects to take charges of up to $900 million to cover costs of the restructuring, with $725 million of it taken this quarter.

The cuts are expected to be complete by the end of the year.

Also as part of the restructuring plan, Agere hopes to sell off its chip fab in Madrid,Spain, where it plans to discontinue operations by the end of the year, as well as reviewing its manufacturing capacity at its facilities in Alentown, Breignigsville and Reading, Penn. and Orlando, Fla. Agere also plans to consolidate several satellite manufacturing sites and leased corporate offices.