& cplSiteName &

AlcaLu Job Cuts to Hit 5,500

Ray Le Maistre
10/18/2012
50%
50%

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
^ip4g^
50%
50%
^ip4g^,
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 !!!

Brunonero
50%
50%
Brunonero,
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. 


 

exon
50%
50%
exon,
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
Light Reading founder Steve Saunders grills Cisco's Roland Acra on how he's bringing automation to life inside the data center.
Flash Poll
Upcoming Live Events
February 26-28, 2018, Santa Clara Convention Center, CA
March 20-22, 2018, Denver Marriott Tech Center
April 4, 2018, The Westin Dallas Downtown, Dallas
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
Project AirGig Goes Down to Georgia
Dan Jones, Mobile Editor, 12/13/2017
Here's Pai in Your Eye
Alan Breznick, Cable/Video Practice Leader, Light Reading, 12/11/2017
Verizon's New Fios TV Is No More
Mari Silbey, Senior Editor, Cable/Video, 12/12/2017
Ericsson & Samsung to Supply Verizon With Fixed 5G Gear
Dan Jones, Mobile Editor, 12/11/2017
Cloudy With a Chance of Automation: Telecom in 2018
Iain Morris, News Editor, 12/12/2017
Animals with Phones
Don't Fall Asleep on the Job! Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed