Lucent to Lay Off 7,000

By Matthew Hicks  |  Posted 2002-07-23 Print this article Print

Move comes after company reported on Tuesday a quarterly net loss of $7.91 billion.

Lucent Technologies Inc. is planning to cut an additional 7,000 employees by the end of the year after reporting on Tuesday a quarterly net loss of $7.91 billion. The third fiscal quarter net loss is more than double that of a year earlier when the Murray Hill, N.J., networking company reported a net loss of $3.24 billion. Revenues for the quarter, ended June 30, also fell by half. They were $2.95 billion compared with $5.89 billion in the same period a year ago.
Most of the 7,000 cuts will be completed by Dec. 31, the company said. Lucent had 53,000 employees at the end of the quarter. The company took a charge of $808 million in the third fiscal quarter for the restructuring of the business.
Lucent is blaming its earnings woes and continued cutbacks on a longer-than-expected slowdown in demand from its carriers and service provider customers. Also hurting earnings for the quarter was a large $5.83 billion noncash charge to defer a tax benefit. "The market continues to be very challenging," said Lucents Chief Executive Officer Patricia Russo, in a statement. "Capital spending constraints have intensified and remained in place much longer than anyone would have predicted." Lucent continues to target late fiscal 2003 for a return to profitability. Related Stories:
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    Matthew Hicks As an online reporter for, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.

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