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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

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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.....

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