Scientific-Atlanta plans to cut approximately 400 jobs, roughly 6 percent of its workforce, due to a downturn in the cable market. The reductions will occur over several months, and are spread over every division of the company.
The cuts will reduce S-A's operating expenses by $40 million annually, and the company will take a one-time, pretax charge of roughly $15 million.
All of the nation's largest cable operators have seen declines in their market capitalizations, and Adelphia has filed for bankruptcy. The companies therefore have reduced their capital expenditures, hurting S-A's business and forcing the layoffs.
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