by InvestorPlace Staff | July 26, 2012 10:38 am
Alcatel Lucent (NYSE:ALU) has announced further job cuts in the wake of its most recent dismal earnings report.
The company saw a net loss of €254 million in the second quarter, as opposed to the profit of €43 million it brought in a year earlier. Its revenue also dropped 7%.
On top of that, the telecom provider burned through €511 million in free cash flow in the quarter, and experts are saying it could face liquidity issues in the future.
To compensate for its struggles, Alcatel now plans to implement €750 million of cuts — around 5,000 jobs. And that comes on top of its existing plans for cuts: Around €1.25 billion in reduced costs by the end of 2013.
Shares of the company took a beating Thursday following the report, dropping 7% in the morning. The company has plummeted 35% in 2012 and 80% over the last year.
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-Alyssa Oursler, InvestorPlace Editorial Assistant
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