Alcatel guillotines 10,000 jobs
PrintVendor carnage (Part 94)
Posted in Business, 1st November 2001 07:20 GMT
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Alcatel is to can 10,000 more workers after reporting another set of disappointing results.
The telecoms equipment supplier made a third quarter net loss of E558m on sales of E5,613m (£3,500m), down 18 per cent on the 6,806 million Euro (£4,242m) it booked for the same period last year.
Weak sales in the US and a decline in Alcatel's handset and submarine businesses were blamed for the losses. Optical networking and data switching were bright spots.
Looking ahead, Alcatel predicts its European business will slow down and is restructuring and slashing jobs so that it can operate profitably on sales of E5 billion (£3.12 billion) per quarter.
Alcatel is to cut its European workforce by 10,000, reducing costs by 20 per cent. This is in addition to the previously announced cuts of 23,000 jobs worldwide.
Alcatel predicts Q4 operating losses will be comparable to those of this quarter, and expects to make net loss for the full yeare of E5bn (£3.12 billion). ®
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