Feeds

Alcatel ditches its fabs

Needs to save money

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Alcatel has said it will sell 108 of its 120 manufacturing plants in order to save on costs. The chairman of the French telecoms manufacturer Serge Tchuruk told the Wall Street Journal he expects the company to ditch the remaining fabs in the near future.

Earlier in the day, Tchruruk had espoused the virtues of outsourcing, saying that it was a great way to cut costs and make you more flexible. That's as maybe but Alcatel is not exactly fighting fit at the moment.

Two weeks ago it decided to sell off its ADSL business to Thomson Multimedia. It said it wanted to concentrate on infrastructure products - which was precisely the stance that screwed up its merger with Lucent in May. Since that collapse, both companies have been in it up to their necks.

Recently, Alcatel said it was getting rid of 900 jobs. Two years before that it fired 12,000.

The fabs will be sold to other manufacturers, who will continue to make Alcatel goods but with others alongside. Tchuruk also suggested he may sell minor shares in other companies, including Vivendi and Societe Generale. ®

Related Stories

Alcatel gets rid of ADSL modem business
Lucent jilts Alcatel at the Altar

Internet Security Threat Report 2014

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.