Telecoms firm Alcatel-Lucent to cut 10,000 jobs

Oct 08, 2013

Telecommunications equipment maker Alcatel-Lucent SA said Tuesday that it plans to cut 10,000 jobs worldwide over the next two years, the latest cost-cutting drive from the loss-making company.

The job cuts are part of a restructuring plan to make the French-American company more competitive. The plan is to reduce fixed costs by cutting 1 billion euros ($1.36 billion), or about 15 percent, by the end of 2015. Under the plan, the company will reallocate research investment to next-generation technology and cut investment in older technology.

The company has struggled since its inception in 2006, when France's Alcatel and the U.S.'s Lucent merged. The savings anticipated by combining research and development costs and reducing staff were quickly offset by pressure to lower prices amid increasing competition from the likes of China's Huawei Technologies Co. and Ericsson AB of Sweden. Last year, the company lost 1.37 billion euros ($1.86 billion), and a new chief executive took over earlier this year.

Alcatel said the job cuts would be presented to its European works council on Tuesday. The cuts will come from all of the regions in which the company operates: 4,100 positions will be cut in its Europe, Middle East and Africa region, 3,800 in the Asia-Pacific zone and 2,100 in the Americas.

In a sign that the layoffs will likely face stiff resistance, especially in Europe, elected officials from western France, the site of an Alcatel-Lucent plant, urged the company to abandon the restructuring plan. The officials said in a statement that they feared the local plant would be closed and accused the company of reneging on promises to keep it open.

Investors appeared at first glance to be backing the plan. The company's share price was trading 1.5 percent higher in morning trading in Paris.

Explore further: EU Parliament votes to break up Google

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Alcatel-Lucent boss leaving as losses mount

Feb 07, 2013

Alcatel-Lucent CEO Ben Verwaayen is leaving the loss-making French-U.S. telecommunications gear maker after a failed four-year bid to turn the business around.

Alcatel-Lucent loss narrows in 1st quarter

May 06, 2011

(AP) -- Alcatel-Lucent SA said Friday its net loss narrowed sharply in the first quarter compared with a year earlier, when a components shortage caused the telecommunications gear maker's losses to balloon.

Best Buy reports 1Q loss on restructuring costs

May 21, 2013

(AP)—Best Buy Co. on Tuesday reported a loss for its fiscal first quarter as it sold its stake in Best Buy Europe and works on a turnaround plan that includes cutting costs and closing some stores.

Merck to cut 8,500 more jobs (Update)

Oct 01, 2013

Merck & Co. plans to cut another 8,500 jobs as the drugmaker continues its struggle with competition from cheaper generic medications that have squeezed the pharmaceutical industry for several quarters now.

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.