Feeds

Alcatel Lucent axes 5,000 staff, takes right shoeing from rivals

'Competitive pricing' leads to nine-figure loss in Q2

High performance access to file storage

Troubled Alcatel Lucent will axe 5,000 jobs after bleeding €254m (£199m) in its latest quarter.

The telecoms kit maker said it will save €750m (£587m) in overheads by shaving more than six per cent off the 78,000 strong global workforce.

Sales for Q2 2012, ended 30 June, fell 7.1 per cent year-on-year to €3.54bn (£2.77bn). The company made a loss of €254m against a profit of €43m (£33.6m) in the same period in 2011.

Alcatel Lucent is feeling the squeeze from rivals including Huawei, whose profits fell 25 per cent to £886m in its latest quarter.

As well as the job cuts, Alcatel Lucent has other cost-cutting masterstrokes in the pipeline that could save up to €1.2bn (£939m) in total by the end of 2013. Vewaayen said this was to "keep ahead of market realities".

"These times demand firm action," the former BT boss added.

Alcatel Lucent is not alone in shedding staff: rival Nokia Siemens Networks is getting rid of 17,000 folk or 23 per cent of its workforce. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.