UTStarcom (UTSI) has announced plans to cut 700 staff, accounting for 11% of the company's total, mainly in China and the United States as part of the company's reorganization efforts.
According to a document filed with the U.S. Securities and Exchange Commission, UTStarcom will record US$10 million as regrouping expenditure in its fourth quarter report and this staff cutting will help the company save about $21 million in payments and bonuses each year.
UTStarcom announced earlier in September that it would try its best to cut the operational costs of each quarter by $10 million-$15 million.
UTStarcom also says that due to the financial problem in China, it will re-file its financial report for the past years.
