Enterasys to slash 30% of work force

PORTSMOUTH: Network equipment maker Enterasys Networks Inc. said on Monday it

would slash its work force by 30 per cent, or 1,700 jobs, coming on the heels of

the resignation of three top executives under a cloud of poor sales, accounting

issues and a government probe.

Enterasys, the former core business of the old Cabletron conglomerate, said

the job cuts were part of a larger restructuring plan to bring the company costs

in line with its lower-than-expected revenues.

The company said last week it expected its fourth-quarter revenue to be lower

than expected as a result of revenue recognition irregularities in the

Asia-Pacific region. It also said first-quarter sales would fall short of

expectations because of poor market conditions.

The company delayed the release of its fourth quarter results in order to

conduct a review of a $4 million sales contract in Asia-Pacific. It is also the

subject of a US Securities and Exchange Commission probe into certain affiliated

companies it had planned to spin out.