Tellabs to cut 150 jobs, incur costs up to $6 million

Tellabs Inc., the maker of networking equipment, is cutting about 150 jobs and expects to incur pretax costs of $5 million to $6 million through the first quarter of 2010.

The workforce reduction will help "align our costs with customer spending and current market conditions," the Naperville-based company said today in a regulatory filing.

Tellabs is cutting its workforce as customers curb technology budgets during the recession. Worldwide spending on information-technology products will shrink 9 percent this year as the economy contracts, according to Goldman Sachs Group Inc.

Tellabs fell 8 cents to $5.52 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have gained 34 percent this year.