Bookham junks disruptive technology, disrupts 180 jobs

Cash Burn Baby

  • alert
  • submit to reddit

Security for virtualized datacentres

Bookham Technology, the lossmaking UK fibre optics comms components maker, is axeing 160-180 jobs in a move to reduce cash burn.

The job cuts affect R&D, manufacturing and support staff working on the company's ASOC operations. Today the company announced its intention to withdraw from this business and its intention to dispose of its wafer fab at Milton, UK. Once upon a time, Bookham described ASOC as a disruptive technology. Now it looks like the only disruptive thing about it will be the impact of its demise on the livelihoods of 180 or so people.

Following the job losses, Bookham will have a staff roster of approx. 1,500.

Along with cost-cutting moves announced earlier this year, today's reductions will ensure that Bookham's break-even point is reduced to £30m-£35m a quarter, the company says.

Bookham's loss for Q2, 2003 was £16.9 million on sales of £21m. So it has a big sales job to do too. The company's fortunes are tied to the health of the networking equipment market: just three vendors, Nortel, with 61 per cent, and Marconi and Huawei with 10 per cent apiece, account for four-fifths of the firm's revenue. ®

New hybrid storage solutions


Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.