DOW JONES NEWSWIRES 
 

Tellabs Inc. (TLAB) plans to trim 150 jobs, or nearly 5% of its work force, as the company tries to cut costs amid lower demand for telecommunications equipment.

The supplier of voice, data and video systems has roughly 3,230 employees. The company expects to record charges of $5 million to $6 million in the next several quarters from the job cuts.

Tellabs in April, while reporting lower first-quarter results, said while sales of its data products have been growing, it hasn't been enough to offset declines in the rest of its broadband business.

The company's phone and Internet clients include giants such as AT&T Inc. (T) and Verizon Communications Inc. (VZ), which are being cautious on capital spending. The global recession is just the latest challenge for the telecom networking industry, on top of increased competition from low-cost Asian rivals and weakening leverage amid consolidation in the telecommunications sector.

Tellab shares fell 3.1% at $5.35 in early trading. The stock is up 29% this year.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; tess.stynes@dowjones.com