Business

Alcatel Lucent to slash 5,000 jobs after reporting loss

  • 26 July 2012
  • From the section Business
Workers strike against Alcatel Lucent in 2009
Image caption Alcatel Lucent workers went on strike over job cuts in 2009

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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