Further job cuts hit troubled chip sector

NEWS Agere Systems is axing a further 4,000 jobs in addition to a swathe of job cuts made earlier this year. The optical components maker, which was spun off from Lucent Technologies, is in the process of cutting 25 per cent of its workforce as part of a cost-cutting strategy having issued a profits for its third quarter. 2,000 positions were axed in April and Agere has said 1,000 of the most recent cuts will come at its chip plant in Madrid. In a statement the company said it is expecting revenues in the June quarter to be $920m, below April's predictions of $950m. John Dickson, CEO of Agere, said business is sliding because the company was set up to serve a growing market. When the markets closed on Friday Agere shares had risen 21.87 per cent to $7.30.