Alcatel-Lucent CEO Warns Company ‘Could Disappear’

by Christopher Freeburn | October 16, 2013 10:14 am

alcatel Alcatel Lucent CEO Warns Company 'Could Disappear'[1]The days may be numbered[2] for a French telecommunications giant.

That message comes from its CEO. Michel Combes is warning that Alcatel-Lucent (ALU[3]) is in serious financial danger and “could disappear,” unless it turns around its struggling business, Reuters notes.

Alcatel-Lucent has been losing money since 2006. The company is undergoing yet another restructuring plan under which it it shedding jobs[4] and refocusing on more profitable businesses.

A new proposal to trim its payroll by 10,000 workers[5] has met with significant resistance from French labor unions. In a bid to mitigate the fallout, Combes has reassured French lawmakers that the company will help at least 900 laid-off workers find new jobs.

The latest restructuring is the company’s sixth attempt to reverse its fortunes in the last seven years. Combes told a French parliament committee that he doesn’t plan on “there being a seventh.” Combes replaced┬áBen Verwaayen, who was ousted in February[6] due to the company’s continued poor performance.

Alcatel-Lucent is looking to shut down a number of facilities in France, a move that has infuriated labor leaders.

Shares of Alcatel-Lucent fell more than 1% in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/01/alcatel.jpg
  2. days may be numbered: http://www.reuters.com/article/2013/10/15/us-alcatel-ceo-idUSBRE99E0Y020131015
  3. ALU: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALU
  4. under which it it shedding jobs: http://investorplace.com/2012/10/alcatel-lucent-shocks-union-with-plans-to-cut-5500-jobs/
  5. to trim its payroll by 10,000 workers: http://investorplace.com/2013/10/alcatel-lucent-to-cut-10000-jobs/
  6. who was ousted in February: http://investorplace.com/2013/02/alcatel-lucent-ceo-steps-down-after-failed-turnaround-bid/

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