Paris, France (4E) – Alcatel-Lucent said it will cut 10,000 jobs worldwide, including 900 in France, a move aimed to reduce costs by 1bn euros, the French-U.S. telecom-equipment maker confirmed on Tuesday.
The cuts, which is expected to be completed by 2015, account for around 14 percent of the Paris-based company’s 72,000-strong global workforce as of December. Around 4,100 jobs are expected to affected in Europe, Africa and the Middle East, 2,100 in the Americas and 3,800 in Asia, according to Alcatel-Lucent. It also said it will stop operations in its Toulouse and Rennes, France sites.
The company’s “Shift” plan is aimed to transform research and development to become more efficient and to reallocate resources to focus on future technologies while cutting down fixed costs significantly, according to the company’s statement.
Since the 2006 merger of Alcatel and Lucent, the company been consistently losing money, despite efforts by the previous management led by Ben Verwaayen to restructure the firm.
Soft investment from European telecommunications carriers and cost pressures on equipment, as well as competition from China’s Huawei Technologies Co., are leading to staff reductions in Alcatel-Lucent and rivals like Nokia Oyj’s network-gear division.
In the first six months of the year, Alcatel-Lucent recorded a 885mn euro ($1.2bn) loss, compared with a 396mn euro loss in the year-earlier period.