Alcatel to axe 10,000 jobs worldwide
The product of a 2006 Franco-US merger aimed at creating a global giant, Alcatel-Lucent told a European Works Council meeting it intended to axe nearly a seventh of its employees
Telecommunications equipment maker Alcatel-Lucent announced plans yesterday to cut 10,000 jobs worldwide in what its chief executive called the last chance to turn the company around from heavy losses.
The product of a 2006 Franco-US merger aimed at creating a global giant, Alcatel-Lucent told a European Works Council meeting it intended to axe nearly a seventh of its employees. Altogether, 4,100 posts will go in Europe, the Middle East and Africa, 3,800 in the Asia-Pacific region, and 2,100 in the Americas.
It is the latest step in a plan announced in June to focus on high-growth areas ranging from 4G mobile to high-speed broadband, and to lower fixed costs by more than 15 per cent, saving €1 billion (HK$10.5 billion).
"The 'Shift Plan' is about the company regaining control of its destiny," chief executive Michel Combes, the latest of three heads since the merger, said.
He told Le Monde newspaper: "Everyone knows this plan is the last chance. The company is in a very serious situation."
Including past measures, the total cost of the plan is €1.2 billion, an amount the company expects to fund through asset sales.