& cplSiteName &

AlcaLu Job Cuts to Hit 5,500

Ray Le Maistre

9:00 AM -- The headcount reduction at Alcatel-Lucent (NYSE: ALU) will affect 5,500 employees, about 7 percent of the company's 78,000 staff, the vendor told the media Thursday following meetings with unions.

The total is a little higher than the 5,000 indicated in September, when the vendor unveiled its restructuring plans. About half of the total cuts will be in the Europe, Middle East and Africa (EMEA) region. (See Alcatel-Lucent Unveils Revamp.)

France is taking a significant hit, with about 1,400 of the 9,000 AlcaLu staff employed in the vendor's home country set to lose their jobs, according to Bloomberg.

The vendor's workforce in India is also expected to take a sizeable hit. (See IndiaWatch: Alcatel-Lucent To Cut 1,000 Jobs In India.)

Many in the industry have questioned whether CEO Ben Verwaayen is going far enough with his cost-reduction program. The company has been struggling to keep pace with market changes and is regarded as a likely candidate to become the next major telecom supplier casualty unless it embarks on a more radical restructuring plan. (See Alcatel-Lucent: Too Little, Too Late? and AlcaLu Issues Full-Year Profit Warning.)

By comparison, Nokia Networks is in the process of cutting more than 17,000 jobs and is starting to see the financial benefits of the resulting significant operating cost reductions. (See APAC Boosts NSN's Q3.)

— Ray Le Maistre, International Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Lightning
12/5/2012 | 5:18:57 PM
re: AlcaLu Job Cuts to Hit 5,500

The news about reduction in India reported by LR India has some comments from the Editor in the comments section ... Which clarifies to some extent ... and then the article refers back to the same article for some section of this ...

This is confusing !!!

User Rank: Light Beer
12/5/2012 | 5:18:56 PM
re: AlcaLu Job Cuts to Hit 5,500

Remember this from Ben in January this year?

"There's no way we are cutting our staff by 25 percent. We are in a different situation because we have quickly turned towards the network technologies of the future."

Strategy here was just to "last longer than Nokia-Siemens". Is that really credible anymore given what we saw today? NSN just posted record profits and four consecutive quarters of cash generation.  I'm worried we're doing far too little too late to survive. 


User Rank: Light Beer
12/5/2012 | 5:18:54 PM
re: AlcaLu Job Cuts to Hit 5,500

I bet that by end of 2013 ALU will be much thinner with a much smaller portfolio. ALU has decided to adopt the NSN strategy with even greater delay than NSN - I think is just too late. And since things dont really happen until they do, I wouldn't be sure about the French headcount reduction. After all Holande promised.....

More Blogs from EuroBlog
Having taken a breather from its acquisition spree in the US, Zayo could kick-start some infrastructure consolidation action in Europe
Some good news for its Finnish parent – Nokia Siemens Networks is on a margin roll
Telefónica to boost its broadband lines in LatAm with DSL management the from ASSIA
According to the value of Nokia's takeover deal, Nokia Siemens Networks is worth less than $5B
As APAC and North America forge ahead, Europe seems stuck in yesteryear
Featured Video
From The Founder
Ngena's global 'network of networks' solves a problem that the telecom vendors promised us would never exist. That doesn't mean its new service isn't a really good idea.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Dell CTO: Public Cloud Is 'Way More Expensive Than Buying From Us'
Mitch Wagner, Editor, Enterprise Cloud, 3/19/2018
Eurobites: Cambridge Analytica Feels the Heat
Paul Rainford, Assistant Editor, Europe, 3/20/2018
Is Business Voice Rapidly Fading?
Carol Wilson, Editor-at-large, 3/15/2018
Eurobites: BT Hires Sherman as Strategy Tank
Paul Rainford, Assistant Editor, Europe, 3/14/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed