Troubled Mitec Telecom Inc., the Montreal based designer and manufacturer of wireless network products, has laid of...
October 29, 2002
Troubled Mitec Telecom Inc., the Montreal based designer and manufacturer of wireless network products, has laid off 150 employees as part of ongoing efforts to reduce operating costs and streamline activities.
Company interim president Ken Allstaff said the layoffs, which were announced yesterday, are a result of the “current” telecommunications turmoil.
“The mobile communications market will remain flat for the foreseeable future,” he said. “The lack of spending has been much worse than the informed opinion of 18 months ago. As a result, we are taking a very prudent approach to our wireless business.”
The company has also realigned its engineering efforts as part of the cost cutting measures. “Simply put, our engineering costs were too high for current revenue streams,” said company CFO Keith Findlay. “In this business we have to meet aggressive pricing targets and our margins were unable to support the level of R&D spending.”
Mitec was scheduled to hold its annual general meeting today in Montreal.