Feeds

Lucent to cull 9,000 staff

And warns on profit

Maximizing your infrastructure through virtualization

Lucent is to cut some 9,000 jobs from its global workforce following its planned merger with French telecoms firm Alcatel.

However, Irish workers will have to wait to find out if they will be affected by the plans. A spokesperson for Lucent in Ireland said there was no indication of where the job cuts would hit, and there was unlikely to be until the merger had actually taken place. Lucent employs some 500 people in Ireland.

Talks on the possible merger between the two firms were confirmed in March, and the deal is due to be completed by the end of this year, with a €34bn price tag being discussed.

A previous attempt at a merger some five years ago failed to go ahead after Lucent bosses became concerned that the firm would not be given equal weight in the deal. This time around, the merger is supposed to be one of "equals", but Lucent is generally valued at less than Alcatel.

At the last count in 2005, Alcatel employed about 58,000 people worldwide and achieved sales of €3.1bn, operating in more than 130 countries.

Meanwhile, Lucent has announced that it is expecting its third quarter revenues to drop to $2.04bn, down from $2.14bn in the second quarter and $2.34bn in the year-ago quarter. The decline has been attributed to falling sales in North American mobility customers and falling revenues in China.

"During the third quarter, our North American mobility business was adversely impacted by a slowdown in spending on some of our current-generation wireless solutions," said Lucent Technologies chairman and CEO Patricia Russo. "However, we are beginning to see some of our customers move toward the next phase of mobile high-speed data."

According to Lucent's statement, the firm is expecting earnings of about $0.02 per diluted share, compared with $0.04 per share in the second quarter and $0.07 in the third quarter of 2005.

Copyright © 2006, ENN

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
Disaster Recovery upstart joins DR 'as a service' gang
Quorum joins the aaS crowd with DRaaS offering
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.