May 10, 2001 – Ottawa, Canada, – Mitel Corp. has announced further workforce reductions, after releasing 5% of its team during 1Q01.
“In keeping with the lower level of sales we are taking extraordinary measures to reduce our costs and expenses as quickly as possible,” said Patrick Brockett, president and CEO of Mitel. “Effective immediately, we are reducing our workforce by 17% or about 430 employees globally. This is in addition to a rigorous cost-containment program that has already been implemented.”
When the current restructuring is complete, Mitel expects to employ some 2,000 people globally.
“Virtually all semiconductor companies are affected by the downturn in our industry and we are not exempt,” Brockett said. “So we are taking immediate steps to deal with the reduced sales outlook as seen by the industry and ourselves.”
Research and development expenses for 4Q01 represented 32% of sales or $40.2 million and 19% of revenue or $125.2 million for the year. “Our R&D programs are principally focused on higher-growth opportunities in communications semiconductors for wired, wireless and optical media.” said Brockett.
The company expects the downturn to continue for the 1Q02.
With the company focusing solely on semiconductors, a new management organization has been put in place. Reporting to Patrick Brockett, president and CEO, will be:
* Kevin Arthur, Worldwide Sales
* Peter Burke, Network Access Business Unit (acting)
* Peter Burke, Chief Technology Officer
* Jean-Jacques Carrier, Finance and Chief Financial Officer
* Tony Gallagher, Worldwide Operations
* Ray Gleason, User Access Business Unit
* Claes Johansson, Optical Products Business Unit
* Mark Levi, Corporate Marketing
* Don McIntyre, Human Resources, General Counsel and Secretary
* Steve Swift, Medical Products Business Unit
Francois Cordeau, senior vice president and general manager of the company’s former semiconductor division has left the company to pursue other career interests. Business unit heads now report directly to Patrick Brockett.
Mark Levi joined the company in Ottawa on May 7 to lead corporate marketing. Formerly of National Semiconductor, Mr. Levi brings more than 30 years of experience in semiconductor sales, marketing and general management.