Feeds

Contractors and managers hit in Alcatel-Lucent layoffs

6,000 'realigned' to dole queue

Remote control for virtualized desktops

Recently-installed Alcatel-Lucent boss Ben Verwaayen has wasted little time in swinging the axe - today the firm said 1,000 managers and 5,000 contractors are for the chop.

The company-wide cost-cutting programme is planned to save €1bn per year in the next two years. The loss-making telecoms equipment maker said it will break even next year and be profitable in 2010.

Alcatel-Lucent has been losing billions since it was formed by a merger in 2006. The combined outfit has already shed 16,500 jobs in its struggle for profitability.

Verwaayen will also seek savings in Alcatel-Lucent's real estate, support functions and discretionary spending (so get those creative expenses claims in sharpish).

The Dutchman was hired as CEO in September. At BT he was credited as the father of a massive restructuring from 2002 that saw it deliver huge profits. He sacked lots of people there, too.

He said: "The new management team is committed to rapidly executing this new strategy and leveraging the new streamlined organization. We are focused on delivering results and restoring profitability."

The market responded to today's announcement by sending Alcatel-Lucent shares down more than 11 per cent at time of writing. Analysts had expected a more radical restructuring. ®

Beginner's guide to SSL certificates

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Ofcom tackles complaint over Premier League footie TV rights
Virgin Media: UK fans pay the most for the fewest matches
FCC: Gonna need y'all to cough up $1.5bn to put broadband in schools
Kids need more fiber, says Wheeler, and you'll pay for it
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.