France-based Alstom (OTCMKTS:ALSMY), which manufactures high-speed trains, announced that it would lay off 10% of its employees or about 1,500 workers. The firm also stated that it might sell more of its shares to raise money and reported that it is unloading assets to bolster its balance sheet by 1 billion euros. The firm’s shares slumped 17% in Paris in the wake of the news about the Alstom layoffs.

Alstom’s U.S.-based over-the-counter shares, trading under the ALSMY stock ticker, also tumbled about 13% on the news.

More About Alstom’s Cost-Cutting Measures

In addition to the Alstom layoffs, the company has already begun selling assets in order to raise 1 billion euros.

Meanwhile, CEO Henri Poupart-Lafarge spooked investors by stating in an interview with Bloomberg TV that the company could look to sell more shares of its stock. However, he noted that the train maker would try to avoid taking the latter action.

Additional Information About Alstom

Investors were turned off by the company’s announcement last month that it would burn 500 million euros to 750 million euros during its fiscal year that ends in March 2024.

But on a positive note, Alstom is generating record sales, and its backlog as of the end of September was a huge 90 billion euros.

Alstom, which acquired Canadian train maker Bombardier for 5.5 billion euros in 2020, was weighed down by 3.4 billion euros of net debt as of Sept. 30. Alstom wants to lower its net debt to 1.4 billion euros in the next 18 months.

Meanwhile, Alstom is also being hurt by the postponement of a deal in the U.K. that had originally been assigned to Bombardier.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.