Bausch & Lomb has been making some waves in the news recently. Late August, the company warned that it would miss analysts' estimates for the remainder of 2000 and all of 2001. The company expects 2000 earnings to be 15% less than analysts' estimates. Subsequently, B&L let go its President and Chief Operating Officer, Carl Sassano, after eliminating his position. B&L stock plummeted more than 30% the day of the announcement.

Sassano, 50, had been with B&L for nearly 25 years. William Carpenter, chairman and chief executive, said that he decided to eliminate Sassano's position in an attempt to bring himself closer to the day-to-day activities of the company. "I thought it best to remove a layer of management," he explained.

The company attributes the revenue reduction to slower growth in the vision care segment, price pressure on U.S. generic drugs and product supply constraints. The company said that growth in the eyecare sector has been even slower than it initially anticipated, with new products drawing wearers of its other existing products, rather than attracting new customers.

"We're deeply disappointed and frustrated to have to reduce our sales and earnings expectations for the remainder of 2000 and 2001," said Carpenter. Also, the company is undertaking a complete review of how it's structured and managed, and the main priority of the management team is to develop and implement plans to improve its performance.