Alcatel Lucent to slash 5,000 jobs after reporting loss

Workers strike against Alcatel Lucent in 2009 Alcatel Lucent workers went on strike over job cuts in 2009

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Telecoms equipment maker Alcatel Lucent has said it plans to slash 5,000 jobs in order to save costs as it reported a net loss in the second quarter.

Cutting 6.4% of the workforce would allow the group to save 750m euros ($910m; £587m), the firm said.

The French-US group posted a loss between April and June of 254m euros against a 43m-euro profit a year ago. Revenue fell 7.1% to 3.5bn euros.

Shares in Alcatel Lucent closed down 5.94%.

'Firm actions'

"It is clear from the deteriorating macro environment and the competitive pricing environment in certain regions... that we must embark on a more aggressive transformation," said Alcatel's chief executive Ben Verwaayen.

The Paris-based company is facing challenges from a faltering global economy and stiff competition from China's Huawei Technologies and Sweden's Ericsson.

The company has a cost reduction target of 1.25bn euros by the end of 2013, which will include the job cuts as well as exiting non-profitable contracts.

The company currently employs 78,000 staff worldwide.

Rival Nokia-Siemens Networks recently said it would cut 17,000 jobs - 25% of its staff - in order to streamline its operations.

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