Global IPTV and IP-based broadband solutions provider UTStarcom Inc. (Nasdaq: UTSI) announced on Thursday that it plans to lay off 10% of its global workforce, approximately 460 employees, and wind down its Korean handset manufacturing operation by July 2009 in a plan to reduce annual operating expenses by more than 25% or $100 million.

UTStarcom will incur a restructuring charge of about $8 million in the fourth quarter of 2008 for severance packages in connection with the 10% layoff, which will take place in the fourth quarter and the first quarter of 2009. For the Korean operation, UTStarcom will incur a restructuring charge of approximately $10 million in the fourth quarter. The operation mainly supplies handsets to Personal Communications Devises LLC for sale in the United States, while the company's handset segment will continue to supply to the China market. UTStarcom also said it plans to disband its custom solutions business unit by the end of the first quarter of 2009.

Non-executive members of the board have agreed to reduced retainers for one year, and CEO and president Peter Blackmore and other executives have declined 2008 cash bonuses. UTStarcom recorded net sales of $181 million in the third quarter, compared to $646 million in the year-ago period, after divesting its personal communications division on July 1. The company booked a net loss of $55.9 million in the quarter, compared to a loss of $55.3 in the third quarter of 2007.

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