Alcatel-Lucent to wield axe as part of business revamp

12 Dec 2008

French-US telecoms equipment maker Alcatel-Lucent today revealed it is looking to shed around 1,000 white-collar jobs as part of its wider strategy to reverse its declining fortunes. Incoming chief executive officer Ben Verwaayen, who took over in September following the dismissal of Patricia Russo, said the cuts would make Alca-Lu ‘more agile’ by doing away with unnecessary tiers of management. The Associated Press reports that the Paris-headquartered networking equipment maker also intends to axe 5,000 contractor jobs under measures designed to trim operating costs by EUR750 million (USD991 million) by the fourth quarter of 2009. Verwaayen says the proposed cuts will help the company to break even at the operating level next year. The struggling manufacturer has failed to record a profit since it was formed through Alcatel’s USD11.4 billion acquisition of Lucent Technologies in 2006. The group’s recently appointed CFO, Paul Tufano, warned of the ‘challenging year’ ahead but said that the measures being taken would give the company ‘substantial momentum going into 2010.’

France, United States, Alcatel-Lucent