EXFO Cutting Workforce by 20 Percent

QUEBEC, May 16 -- EXFO Electro-Optical Engineering Inc. announced it is reducing its global workforce by approximately 20 percent, part of "additional proactive measures" the company said it is taking to accelerate its return to profitability.

EXFO has implemented a restructuring plan in order to reach a pro-forma break-even level of approximately $20 million to $21 million in quarterly sales. The restructuring plan is expected to be completed before the end of calendar 2002, the company said.

"Given that capital spending among telecommunications carriers continues to be weak, we have moved ahead to further reduce our break-even level," said Germain Lamonde, chairman, president and CEO of EXFO. "The actions we have taken are difficult, but they are necessary to bring the organization back to profitability as soon as possible and to safeguard the future of our company."