Feeds

Alcatel-Lucent cuts off 4,000 workers

Jobs go as losses grow

Maximizing your infrastructure through virtualization

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. ®

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'
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.