ILX Lightwave lays off another 23 Bozeman workers

In its fifth round of layoffs in 16 months, ILX Lightwave on
Thursday let another 23 Bozeman employees go.

The high-tech company also laid off four of its workers in Boulder,
Colo. It now has a total of 64 employees worldwide, down from
more than 300 in June 2001.

By KAYLEY MENDENHALL Chronicle Staff Writer

ILX, which builds production equipment for companies that make
fiber-optic components, has been hurt by a decline in the national
fiber optics industry, said Larry Johnson, president and CEO.

He said the layoffs were necessary because the predicted sales
for 2003 were lower than expected.

"(The layoffs were) definitely across the board, we had to slim
down in every area," Johnson said. "Of course it is hard. We have
a lot of good people. As we have gone through these downsizings
we have always kept the best people."

In the past, ILX executives have been quiet about layoffs until the
day they happen. This time, Johnson said they warned employees
about a month ago that future layoffs were probable.

"We got some mixed reviews," he said. "Some people appreciated
knowing. Some worried for the month. The point was, no one was
surprised because they knew we were going to have to reduce
staff."

Because the high-tech industry in Bozeman has seen an upswing
lately as the national economic situation has improved, Johnson
said it is likely at least some of his former employees will be able to
stay in the area.

Montana’s high-tech companies have been harder hit by the
national economic recession, which began just before ILX’s first
layoffs, than other industries in the state, said Phil Brooks,
Montana state economist in the Department of Labor.

In order to qualify as a recession, an economy has to experience a
six-month consecutive downturn, Brooks said. Montana, which has
a relatively small statewide economy, "bounced some, but we
never hit the six-month threshold," Brooks said.

"High-tech companies, whether they are in manufacturing or in
software development or whatever, are more susceptible to the
national business cycle as compared to other industries," he said.

Looking ahead, Johnson said ILX hopes to lease half of its 43,000
square-foot building to another high-tech company to offset some
operating costs. The company’s building is on the east frontage
road near Kelly Canyon.

He also plans to sell off some equipment — including desks,
computers and office dividers — that is not being used.

Kayley Mendenhall is at [email protected]

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