Alcatel-Lucent to axe 10,000 staff

The networking company’s new CEO continues his cost saving plan by wiping almost 14% of its global workforce

Alcatel-Lucent has confirmed it is to ditch 10,000 staff as part of its “shift plan” for cost savings.

The firm’s recently appointed CEO, Michel Combes, first announced the strategy back in June, two months after taking the reins of the networking manufacturer. By refocusing its efforts on burgeoning areas of the market, such as cloud, 4G and broadband, he claimed the company could return to profitability and secure a financially stable future.

Specific moves included redirecting R&D budget so 85% would focus on the aforementioned technologies, reducing R&D spend in legacy technologies by 60% and cutting administrative, sales and support functions, which Combes believed would save €1bn or more by 2015.

However, yesterday was the first time job loss figures were shared, which Alcatel-Lucent confirmed would affect every region it operated in.

A total of 4,100 jobs will be cut in Europe, the Middle East and Africa (EMEA), 3,800 in Asia Pacific and 2,100 in Americas, and by the end of 2015, Alcatel-Lucent will have halved the number of its business hubs globally.

"We launched The Shift Plan in June to give Alcatel-Lucent an industrially sustainable future,” said Combes. “The strategic choices we made have been validated by our customers.”

“To carry out this plan we must make difficult decisions and we will make them with open and transparent dialogue with our employees and their representatives. The Shift Plan is about the company regaining control of its destiny."

 

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