Alcatel-Lucent CEO Ben Verwaayen has resigned after the telecoms hardware manufacturer posted substantial losses for the fourth quarter of 2012.
Ben Verwaayen took over at the firm in 2008 when he stood down as CEO of BT, hoping to bring Alcatel-Lucent back into profitability.
Alcatel-Lucent posted quarterly losses of just over €1.37bn, which included restructuring charges of €247m, an impairment charge of €894m and €514m in deferred tax.
Revenues did increase quarter on quarter to reach almost €4.1bn, but this was still down by 1.3% year-on-year.
Ben Verwaayen said the "performance program" Alcatel-Lucent put in place last summer to try to rebuild the telecoms hardware manufacturer was going well.
The outgoing CEO said: “We have seen progress on all these choices, and close 2012 ahead on our cost reduction plans. We can see a clear statement of customer confidence through growth in both our order book and backlog.”
“Through 2013 we will remain focused on completing the performance program. We will deploy our resources to customer relationships where we are a true partner and in product areas where we can drive an economic return for our shareholders.”
Verwaayen will remain at the helm of Alcatel-Lucent until a replacement is found. He has also confirmed he will not be seeking re-election as director of the company’s board.
Philippe Camus, chairman of the board, said: “Over the last few years, Ben has set a new direction, created one company out of two, and has recently seen through the completion of the stabilisation of the company’s balance sheet, enabling us to move forward with confidence.”
“The board wishes to record its thanks to Ben, and will take full advantage of him remaining in the role as CEO whilst the board runs a full and independent process to find a successor, looking at both internal and external candidates.”