by Christopher Freeburn | October 16, 2013 10:14 am
The days may be numbered for a French telecommunications giant.
That message comes from its CEO. Michel Combes is warning that Alcatel-Lucent (ALU) 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 and refocusing on more profitable businesses.
A new proposal to trim its payroll by 10,000 workers 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 Ben Verwaayen, who was ousted in February 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.
Source URL: http://investorplace.com/2013/10/alcatel-lucent-ceo-warns-company-disappear/
Short URL: http://invstplc.com/1fvc3wI
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.