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Alcatel-Lucent to Cut Additional Jobs After “Disappointing” Fourth Quarter

6:30 am on February 10, 2007 | Category: Business, Corporate

Alcatel-Lucent SA, which was formed last year through the merger of France’s Alcatel and U.S.-based Lucent, has announced plans to cut a further 3,500 jobs after it failed to generate a profit in the fourth quarter.

The Paris-based telecom equipment giant suffered a quarterly loss of â‚¬618 million (US$803 million) for the three month period ending on December 31, compared to a combined profit of â‚¬381 million in the same period a year previous.

Quarterly revenue for the newly merged entity declined by 15.8% to â‚¬4.42 billion ($5.74 billion), from a combined total of â‚¬5.25 billion in Q4/2005.

In an effort to curb this slide in profits, Alcatel-Lucent says it will now have to shed 12,500 jobs over the next three years, rather than the 9,000 that were initially announced.

“These are difficult but necessary decisions, and we will manage these reductions with care,” commented the company’s CEO, Parthia Russo, who referred to the fourth-quarter financial results as “disappointing.” No details were given on where the additional downsizing will take place.

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