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Lucent to cut 10,000 more jobs

Telecommunications networking company Lucent Technologies is to cut an additional 10,000 jobs as it continues to ride out tough...

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Telecommunications networking company Lucent Technologies is to cut an additional 10,000 jobs as it continues to ride out tough economic conditions in the technology sector.

Lucent has been cutting jobs since 2000 as it has sought to stabilise its economic health, which has been hit hard by the economy and huge drops in corporate IT spending.

Last April, Lucent announced that it would reduce its workforce to 50,000 from about 62,000. Later, the company estimated that it would cut more workers, leaving about 45,000 employees.

The latest layoffs are part of what the company said is a more aggressive restructuring plan than previously announced.

Lucent spokesman Bill Price said the company has about 47,000 workers, of whom 2,000 were previously scheduled for layoffs by the end of December. The company now expects to have about 35,000 employees by the end of its 2003 financial year, he said.

"Clearly, we are in an unprecedented time in terms of telecom and the decline in spending," Price said. Yet despite the layoffs and gloomy outlook, Lucent expects to be profitable by the end of its 2003 financial year as a result of the cuts and other adjustments it has made.

To reach that goal, Lucent will boost existing systems, rather than working on new products that would be hard to sell in lean times.

Lucent said it still expected an estimated 20% to 25% decline in the fourth quarter from third-quarter revenue of $2.95bn (£1.89bn).

The company will take a restructuring charge of about $1bn to pay for the layoffs and other expenses, and will also record a charge to equity of about $3bn because of a decline in pension assets in its management pension plan, as part of the changes.

Lucent will announce its quarterly earnings on 23 October.

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