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Alcatel-Lucent Gives Details on Plan to Cut 10,000 Jobs Alcatel-Lucent Gives Details on Plan to Cut 10,000 Jobs
(about 1 hour later)
PARIS — Alcatel-Lucent, the French-American telecommunications equipment maker, has laid out the details of a comprehensive restructuring that includes 10,000 job cuts worldwide over the next two years.PARIS — Alcatel-Lucent, the French-American telecommunications equipment maker, has laid out the details of a comprehensive restructuring that includes 10,000 job cuts worldwide over the next two years.
The plan, which was being presented to the company’s European workers council Tuesday, is aimed at cutting fixed costs by 15 percent by the end of 2015, an amount currently equivalent to 1 billion euros, or about $1.3 billion.The plan, which was being presented to the company’s European workers council Tuesday, is aimed at cutting fixed costs by 15 percent by the end of 2015, an amount currently equivalent to 1 billion euros, or about $1.3 billion.
“All geographic areas where Alcatel-Lucent operates will contribute” to the job cuts, the company said in a statement, including 4,100 positions in Europe, the Middle East and Africa; 3,800 in the Asia-Pacific region; and 2,100 in the Americas.“All geographic areas where Alcatel-Lucent operates will contribute” to the job cuts, the company said in a statement, including 4,100 positions in Europe, the Middle East and Africa; 3,800 in the Asia-Pacific region; and 2,100 in the Americas.
Simon Poulter, an Alcatel-Lucent spokesman, said the 10,000 job cuts represented a “net” figure. Another 5,000 jobs might also be eliminated as part of the overhaul, he said, but they would be balanced by a similar number of new hires.Simon Poulter, an Alcatel-Lucent spokesman, said the 10,000 job cuts represented a “net” figure. Another 5,000 jobs might also be eliminated as part of the overhaul, he said, but they would be balanced by a similar number of new hires.
Mr. Poulter said he could not provide any additional details on how the layoffs might play out in the United States, with its local headquarters in Murray Hill, New Jersey. Mr. Poulter said he could not provide any additional details on how the layoffs might play out in the United States, where its local headquarters is in Murray Hill, N.J.
The job cuts work out to nearly 14 percent of the 72,344 worldwide employees Alcatel-Lucent reported at the end of 2012.The job cuts work out to nearly 14 percent of the 72,344 worldwide employees Alcatel-Lucent reported at the end of 2012.
Alcatel-Lucent, based in Paris, was formed from the 2006 merger of the French telecommunications infrastructure champion Alcatel and Lucent Technologies, a former AT&T unit. The combined company has never fulfilled expectations, fighting a constant battle to remain relevant in a market increasingly dominated by Ericsson, Huawei Technologies and Nokia Solutions and Networks.Alcatel-Lucent, based in Paris, was formed from the 2006 merger of the French telecommunications infrastructure champion Alcatel and Lucent Technologies, a former AT&T unit. The combined company has never fulfilled expectations, fighting a constant battle to remain relevant in a market increasingly dominated by Ericsson, Huawei Technologies and Nokia Solutions and Networks.
Only the size of the job losses had been in question after Alcatel-Lucent’s new chief executive, Michel Combes, said in June that he would seek to transform the company over three years, from a generalist telecommunications equipment maker into a specialist in the systems at the heart of next-generation networks, including cloud computing, IP networking and ultra-broadband access. Only the size of the job losses had been in question after Alcatel-Lucent’s new chief executive, Michel Combes, said in June that he would seek to transform the company over three years, from a generalist telecommunications equipment maker into a specialist in the systems at the heart of next-generation networks, including cloud computing, Internet networking and ultra-broadband access.
Mr. Combes said in the statement Tuesday that the company had to “make difficult decisions” and that it would “make them with open and transparent dialogue.” Mr. Combes said in a statement Tuesday that the company had to “make difficult decisions” and that it would “make them with open and transparent dialogue.”
Alcatel-Lucent’s restructuring, he added, “is about the company regaining control of its destiny.”Alcatel-Lucent’s restructuring, he added, “is about the company regaining control of its destiny.”
In France, where laying off employees is discouraged by the labor code, Alcatel-Lucent said it would cut about 900 jobs next year, largely in the areas of support, administrative and sales, while also recruiting about 200 new engineers and technicians equipped with the skills its new plan requires. Another 900 employees face “internal mobility, transfers to partners and redeployments” by 2015, it said. In France, where laying off employees is discouraged by the labor code, Alcatel-Lucent said it would cut about 900 jobs next year, largely in the areas of support, administration and sales, while also recruiting about 200 new engineers and technicians equipped with the skills its new plan requires. Another 900 employees face “internal mobility, transfers to partners and redeployments” by 2015, it said.
The company will also reduce the number of its international business hubs by half and redirect its research and development spending toward growth areas, it said.The company will also reduce the number of its international business hubs by half and redirect its research and development spending toward growth areas, it said.
Shares of Alcatel-Lucent rose 1.6 percent in Paris morning trading. Shares of Alcatel-Lucent rose 1.3 percent in Paris afternoon trading.