Seeking Alpha

Alcatel-Lucent to reportedly cut workforce by 10K

  • French papers Les Echos and Le Figaro report Alcatel (ALU +0.4%) plans to lower its headcount by 10K - 15K jobs will be cut, and 5K created - as part of its efforts (disclosed in June) to cut costs by €1B ($1.35B) by 2015.
  • Le Figaro adds 4.1K of the job cuts will be in EMEA, 3.8K in Asia, and 2.1K in the Americas. Alcatel currently employs 72K workers globally.
  • Look for a decent portion of the cuts to hit Alcatel's Optics (-7% Y/Y in Q2), Focused Businesses (serves non-telecom clients, -18%), and Managed Services (-15%) units. Many of the new jobs could go into the IP (switches/routers, +21%) and Platforms (telecom software, +23%) divisions.
Comments (3)
  • BruceLee1984
    , contributor
    Comments (505) | Send Message
     
    Good Job Combes! this is going to help out big time in my view.
    7 Oct 2013, 04:44 PM Reply Like
  • Sam Johnston1
    , contributor
    Comments (502) | Send Message
     
    cutting jobs isn't on the popularity list but this is a smart business move that will save the company $$$.
    7 Oct 2013, 05:01 PM Reply Like
  • duhan.malali@morganstanley.com
    , contributor
    Comment (1) | Send Message
     
    You cannot cut your way to growth, and you cannot spend your way to wealth. Nonetheless, I think this is a good decision by ALU.
    8 Oct 2013, 03:23 PM Reply Like
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