Alcatel CIT proposes redeployment of its fixed line and optics activities to UMTS and workforce reductions for 2004

December 4, 2003

2 Min Read

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) is reducing its North American workforce to ensure costs are aligned with business levels. Reductions will affect approximately 400 employees divided between the United States and Canada. Employees affected by the reduction will receive separation packages and outplacement services.

In a separate release:

The senior management team of Alcatel CIT, Alcatel's main subsidiary in France, proposed to union representatives in a meeting today to open negotiations regarding a redeployment and adaptation plan for 2004. The goal of the plan is to find solutions for the decrease in fixed-line network and optics activities and at the same time to meet the needs of the increase in the mobile communications activity due to new product and applications development and to the ramp-up of UMTS activity.

It is a two-part plan:The first part concerns the decline in activities and affects approximately470 jobs. An extension of the October 2002 workforce reductionplanconditions is proposed. This plan is based on voluntary departures, principally pre-retirement measures.

The second part includes:

  • the acceleration of transferring work currently carried out onAlcatel sites in the Paris region to sites in Lannion (on the northern coast of Brittany) and Orvault (near Nantes). Teams, particularly in R & D, in Lannion and Orvault are now available because of the decrease in fixed-line networks and optics activities,

  • the redeployment of fixed network and optics teams, previouslydedicated to this work, to UMTS development in Vélizy (south of Paris),

  • the distribution of activities from the Nanterre site among theColombes, Vélizy (near Paris), and Ormes (near Orleans) sites,

  • the increase of the training budget by nearly 50% to pay theretraining programs that will accompany the internal redeployments that will result from these changes. This part concerns approximately 900 employees. This is in addition to the 400 employees already involved in internal mobility programs in 2003.

    As of today, Alcatel CIT employs 7,600 people.

    Alcatel SA

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