MemoWatch Lucent in fiscal clampdown

Stop eating, it's expensive

The Vulture Central MemoWatch team recently published an internal email from Lucent's Henry Schacht illustrating the company's money woes.

Hot on its heels comes this explicit offering. Financial troubles? Us?:

-----Original Message-----
Sent: Wednesday, June 06, 2001 11:53 AM
Subject: WNG NewsFlash: Letter from Brewington - June 6, 2001

========================================================
Wireless Networks NewsFLASH
For the people of Lucent Technologies' Wireless Networks Group (WNG)
June 6, 2001
========================================================

In This Issue
* Letter from Jim Brewington

All,

Last week you heard from Henry Schacht about the need to accelerate our turnaround. We've all been working aggressively to meet and exceed customer expectations and ensure that Lucent remains in the game. But there are other actions we can take in the short term that will go far in improving our cash flow and restoring our profitability.

Each of you can significantly contribute to our success by carefully evaluating all spending and finding ways to cut. Individual decisions add up quickly in a business of our size. Each dollar you save goes directly to our bottom line and makes Lucent more successful. To help guide you, Lucent has established the following company-wide savings initiatives that take effect immediately. Your support for these measures is critical to their success.

** Travel only for customer meetings.
- All travel must use preferred travel suppliers and be booked through Lucent Travel On-Line or the Lucent Travel Center.
- Any travel booked outside these resources will not be reimbursed. Lucent's travel policy is available at http://www.travel.lucent.com/.
- American Express accounts must be used for all travel expenses.

** No off-site meetings except for necessary customer events.

** Eliminate company-provided food, beverages and snacks at internal meetings.

** Suspend all purchases of new PCs, laptops, servers and printers.
- All requests in the United States for replacement IT equipment must be made through the Computer Provisioning Center at http://ciocentral.lucent.com/services/cio_cpc. The center will use existing inventory to replace equipment.
- Any equipment purchased individually by employees through other resources will not be reimbursed. - Employees outside the United States who need IT equipment replacement should go to Lucent's Supply Chain Networks Web site for more information, http://sns.web.lucent.com/about/ap_emea_cala.htm.

** Reduce or eliminate wherever possible the use of pagers, cell phones, home phone and computer lines.

** Stop all moves, rearrangements and furniture purchases.

** Stop orders of Lucent gift items except for customers.

** All capital expenditures must be approved by an Operating Committee member. Capital expenditures can range from office refurbishments and furniture to laboratory and factory equipment.

** Use of consulting services must be approved by an Operating Committee member.
- If approved, all consulting and professional services must be contracted through Lucent's Professional Services management program.
- Policies and guidelines for engaging consultants can be found at http://esupply.web.lucent.com/professional_services/.

** All non-employee workers must be contracted through Lucent's Managed Services Program.
- Requests for non-employee workers can be made through the Managed Services Program Website.

I can't emphasize enough how critical it is for every one of us to stop non-essential spending. If we all do our part in supporting the steps outlined above, the results will immediately improve our bottom line. But more than that, I know you will use your creativity and initiative to go beyond these measures to find other ways for us to conserve our resources while effectively serving customers.

To date, we've made significant strides toward fixing the business and I thank you sincerely for your efforts and dedication. Now as we move into the next phase of our restructuring, we will accelerate the work we are doing and reduce expenses wherever possible to ensure the success of our turnaround.

Together, we have the opportunity to control our own destiny. It's up to us to make it happen.

Sincerely,

Jim Brewington

Reg office manager Vicki has kindly knocked up a big cauldron of soup. Any Lucent employees who haven't eaten for a week or more are invited to Vulture Central on any Friday afternoon for a free bowl. We have also just received a container of winter clothing donated by Romanian orphans. The kids thought that it was only right that these items should go to those in greater need. ®

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