US-French firm to cut 5,000 jobs
Source: Agencies |
July 27, 2012, Friday
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Print Edition
Print Edition
TELECOMS equipment maker Alcatel-Lucent plans to eliminate 5,000 jobs in a multi-million-euro drive to cut costs after it reported a second-quarter net loss of 254 million euros (US$308 million).
The Franco-American company yesterday unveiled a restructuring plan that it said would take 1.25 billion euros off its bottom line by next year.
Alcatel-Lucent had reported a second-quarter net profit of 43 million euros last year.
The company said that the global economic slowdown and heightened competition were hitting profits and that it would exit or reduce operations in markets where it was struggling. It logged the largest decline in revenues in Europe, where sales fell 15.6 percent over the second quarter of last year. It said that retreat was driven by Western Europe.
Its wireless, optics network applications businesses all also registered steep declines in revenues. By contrast, its IP telephony division that supports movie streaming, video calls and gaming was booming, with revenues growing 16.5 percent over last year.
While the Paris-based company has already promised a slew cost cuts, it announced another 750 million euros in reductions that will bring its total cuts to 1.25 billion euros by the end of 2013. It will achieve those by eliminating 5,000 jobs, ending unprofitable contracts and leaving or reorganizing operations in poor markets.
The Franco-American company yesterday unveiled a restructuring plan that it said would take 1.25 billion euros off its bottom line by next year.
Alcatel-Lucent had reported a second-quarter net profit of 43 million euros last year.
The company said that the global economic slowdown and heightened competition were hitting profits and that it would exit or reduce operations in markets where it was struggling. It logged the largest decline in revenues in Europe, where sales fell 15.6 percent over the second quarter of last year. It said that retreat was driven by Western Europe.
Its wireless, optics network applications businesses all also registered steep declines in revenues. By contrast, its IP telephony division that supports movie streaming, video calls and gaming was booming, with revenues growing 16.5 percent over last year.
While the Paris-based company has already promised a slew cost cuts, it announced another 750 million euros in reductions that will bring its total cuts to 1.25 billion euros by the end of 2013. It will achieve those by eliminating 5,000 jobs, ending unprofitable contracts and leaving or reorganizing operations in poor markets.
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