Feeds

Alcatel-Lucent cuts off 4,000 workers

Jobs go as losses grow

Beginner's guide to SSL certificates

Alcatel-Lucent boss Pat Russo shuffled the executive deck chairs and axed 4,000 workers today as the networking group lurched into the red for the third quarter.

Russo appointed Hubert de Pesquidoux CFO, announcing Jean-Pascal Beaufret was leaving to pursue other opportunities. De Pesquidoux was previously head of the firm's enterprise group.

Further down the scale, the firm, formed by Alcatel's 2006 takeover of Lucent, is axing 4,000 employees as it tries to cut costs, mainly through an overhaul of its carrier business group. It reckons the brutal cuts will save it about €400m by the end of 2009.

It could do with the money. In the third quarter revenues slumped 11 per cent from €4.9bn (pro-forma) a year ago to €4.4bn this year. The company said that on a constant currency basis the slide was eight per cent.

Last year's pro-forma €532m net income was transformed into a €258m loss. On an operating basis, last year's €430m profit was slashed to €70m.

Alcatel-Lucent's enterprise and server businesses grew eight per cent and three per cent at constant currencies to €380m and €777m respectively.

However, the carrier group slumped 12 per cent to €3.1bn. It was the wireless and convergence groups that did the damage, sliding 20 per cent to €1.3bn and 39 per cent to €346m, respectively. Wireline grew eight per cent to €1.5bn.

Russo admitted the figures "are not a level that we are satisfied with". And things aren't getting any better in the immediate future. While it expects a "solid ramp up in revenue" for the fourth quarter, it adds that "given some of the recent uncertainty seen in the market" full year revenues will be around flat at constant rates, which is at the low end of estimates.

At the same time, Russo announced a shakeup of the company into two regional strucutres, one covering the Americas, the other the rest of the world. She has also established a new seven person management committee. ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.