Alcatel-Lucent to Cut 10,000 Jobs

It has lost money for five straight quarters

   

Alcatel-Lucent to Cut 10,000 Jobs

jobless unemployment 630 300x227 Alcatel Lucent to Cut 10,000 JobsA French telecommunications giant plans a massive round of layoffs, but is facing resistance from its unions.

On Tuesday, Alcatel-Lucent (ALU) said it would trim its payroll by about 10,000 workers, slashing its workforce by almost 14%. The cuts are part of an overall restructuring program designed to focus the company on profitable businesses and reduce costs. The company’s CEO said that Alcatel-Lucent was in a “very serious situation” and called the changes “the last chance,” Reuters notes.

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The job cuts will hit the company’s operations around the world, paring 2,100 workers in the Americas, 4,100 in Europe, the Middle East and Africa and 3,800 in Asia and the Pacific region.

A major French union indicated that it would oppose the plan, which would eliminate hundreds of jobs in the country. Alcatel-Lucent plans to shutter at least five locations in France.

The company has posted five consecutive quarterly losses. Last year, the company reported a 1.2 billion euro annual loss, it largest shortfall in four years. The poor results prompted the ousting of its former CEO.

Last year, Alcatel-Lucent announced plans to cut 5,500 workers.

Shares of Alcatel-Lucent rose modestly in Tuesday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/alcatel-lucent-to-cut-10000-jobs/.

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