In
a further sign of the downturn in the American economy, the giant
telecommunications equipment maker, Lucent Technologies, wants ten
thousand of its US-based staff to take early retirement. More details
from our business reporter Mark Gregory.
Even
more than its rivals, Lucent has been hit by a dramatic collapse
in orders for telecommunications equipment. At the peak
of the global technology boom Lucent had a stock market value
of 285 billion dollars, making it one of the world's most valuable
companies. Since then its shares have fallen by over 90 percent,
and there's doubt about its long term survival. Lucent needs to
find several billion dollars just to meet debt repayments
due in the next few months. Lucent, based in New Jersey, is the
direct descendent of the company set up by the inventor of
the telephone, Alexander Bell.
WORDS
hit
by - affected very badly by something
collapse
in orders - a significant reduction in the numbers of orders
for a product
At
the peak - at the top (of something)
boom
- if there is a boom in something then there is a fast
increase or development in it
just
to - the phrase just to is used to strongly emphasis
how bad something is
direct
descendent - (in this case it means that) the origins of Lucent
go straight back to the creator of the first telephone
It
owns the famous Bell Laboratories which have spawned many
technological breakthroughs. Last week Lucent abandoned merger
talks with Alcatel, when it became clear that the French telecoms
equipment maker was actually intent on a takeover. In the
latest move, Lucent is offering generous terms to 10,000 mainly
middle mangers to take voluntary retirement. The company
expects a high take up, but won't say if there will be forced
redundancies if not enough people apply. The cuts come in addition
to ten thousand other job losses announced in January. Lucent currently
employs 104,000 staff. Analysts expect the company to announce more
job cuts and asset sales in coming months as it struggles
to repay debts.
WORDS
spawned
- produced or created
breakthroughs - a breakthrough is an important development
or achievement
takeover
- a takeover is when one company buys another company
voluntary
retirement - people who choose voluntary retirement,
agree to give up their job and stop working
take
up - if you take up somethingthen you accept
it
asset sales - the selling off, of parts of a company
