The affected manufacturing plan is located Bolingbrook, Ill., will be closed down and sold by year end. The remaining employees will be moved to the company's headquarters in Naperville, Ilinois, the company said.

The company said it expects that any benefits from the restructuring to be small in 2003 but will increase in 2004 and beyond, stating that it will take time to implement outsourced manufacturing. Beginning in the third quarter, Tellabs will record between $90 million and $110 million in charges connected with the outsourcing, the company said.