Alca-Lu reports third quarterly loss, says more job cuts needed

31 Oct 2007

Telecoms equipment manufacturer Alcatel-Lucent has announced plans to cut a further 4,000 jobs worldwide – boosting its total job losses to 16,500 – after the troubled firm posted its third straight quarterly loss. Alca-Lu reported an adjusted net loss of EUR258 million (USD372 million) for the three months to the end of September, while revenues dipped by 11% to EUR4.35 billion. As part of a wide ranging shake-up, the vendor said Jean-Pascal Beaufret would step down as chief financial officer to be replaced by Hubert De Pesquidoux, who was previously head of the company’s Enterprise division. Christian Reinaudo, head of the Northern European region, will also leave the company. Under pressure CEO Patricia Russo, says she will create a seven-member management committee to report directly to her, in an attempt to create a more focused leadership model. Cutting an additional 4,000 jobs will save EUR400 million by the end of 2009, the company said.

France, Alcatel-Lucent